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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 13, 2008
CITY COMMISSION CHAMBERS@ 5:30 P.M.
AGENDA
□ CALL TO ORDER:
o PRAYER:
□ PLEDGE OF ALLEGIANCE:
o ROLL CALL:
o HONORS AND AWARDS:
o INTRODUCTIONS/PRESENTATION:
□ CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Membership Agreement - Middle Atlantic-Great Lakes Organized
Crime Law Enforcement Network. PUBLIC SAFETY
C. 2008 Water Treatment Chemical Bids - Hydrofluorosilic Acid. WATER
FILTRATION
D. 2008 Water Treatment Chemical Bids - Aluminum Sulfate. WATER
FILTRATION
E. Accept Resignations and Make Appointments to Various Boards and
Committees. CITY CLERK
F. Consideration of Bids for Roblane. Quarterline to Marlane (H-1636).
ENGINEERING
G. Consideration of Bids for Hudson, Barney to Wilson {W-696) and Ireland,
Hudson to Franklin (W-697). ENGINEERING
H. Conveyance of Easement to MDEQ. ENGINEERING
□ PUBLIC HEARINGS:
A. Amendments to Brownfield Plan for Betten Auto Dealerships Project.
PLANNING & ECONOMIC DEVELOPMENT
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
• UNFINISHED BUSINESS:
• NEW BUSINESS:
A. MERS Health Care Savings Program {HCSP) for Medicare Eligible
Retirees. FINANCE
B. First Quarter 2008 Budget Reforecast. FINANCE
C. Brownfield Development and Reimbursement Agreement - Betten.
PLANNING & ECONOMIC DEVELOPMENT
D. Dangerous Buildina Muskegon Hotel Bids for Demolition.
INSPECTIONS
• ANY OTHER BUSINESS:
• PUBLIC PARTICIPATION:
• Reminder: Individuals who would like to address the City Commission shall do the following:
• Fill out a request to speak form attached to the agenda or localed in the back of the room.
• Submit the form to the City Clerk.
• Be recognized by the Chair.
• Step forward to the microphone.
• State name and address.
• Limit of 3 minutes to address the Commission.
• (Speaker representing a group may be allowed lO minutes if previously registered with City Clerk.)
• ADJOURNMENT:
ADA POLICY'. THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO
WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON, PLEASE CONTACT ANN
MARIE BECKER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TOO:
(231) 724-4172.
Date: May 13, 2008
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the Regular
Commission Meeting that was held on Tuesday, April 22 nd .
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 13, 2008
CITY COMMISSION CHAMBERS@ 5:30 P.M.
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, May 13,
2008.
Mayor Warmington opened the meeting with a prayer from Pastor Penny
Johnson from the Oakcrest Church of God after which the Commission and
public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Clara Shepherd, Lawrence Spataro, Sue Wierenga, and Chris
Carter, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Ann Marie Becker.
Absent: Commissioner Steve Wisneski (excused}.
2008-41 INTRODUCTIONS/PRESENTATION:
Mayor Warmington announced that Tom Powers of the United Way presented
the City of Muskegon with the 2007 Bronze Award plaque.
Commissioner Shepherd recognized Stephanie Frey, Miss Shoreline: and Anais
Felt, Miss Teen Shoreline.
2008-42 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, April 22nd_
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Membership Agreement - Middle Atlantic-Great Lakes Organized
Crime Law Enforcement Network. PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety is requesting approval to
enter into a membership agreement with the Middle Atlantic-Great Lakes
Organized Crime Law Enforcement Network (MAGLOCLEN). MAGLOCLEN
facilities inlerjurisdictional information and intelligence exchange, in addition lo
providing analytical and technical support to aid member agencies in their
efforts to identify and apprehend organized criminals and criminal groups across
jurisdictional boundaries. Annual cost of the membership is $350.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the agreement.
C. 2008 Water Treatment Chemical Bids - Hydrofluorosilic Acid. WATER
FILTRATION
SUMMARY OF REQUEST: Recommend endorsement of the lowest responsible
bidder to supply hydrofluorosilic acid - fluoride for the water filtration plant.
FINANCIAL IMPACT: Annual cost of $44,450 (based on average annual water
pumped lo mains).
BUDGET ACTION REQUIRED: None at this time. These chemicals are budgeted
annually. However, the cost increase may require a budget adjustment at a
later date.
STAFF RECOMMENDATION: Staff recommends the Mayor and City Commission
endorse the low bid received and enter into a contract with Lucier Chemical
Incorporated for fluoride.
D. 2008 Water Treatment Chemical Bids - Aluminum Sulfate. WATER
FILTRATION
SUMMARY OF REQUEST: Recommend endorsement of lowest responsible bidder
to supply aluminum sulfate for the water filtration plant.
FINANCIAL IMPACT: Annual cost of $74,645 (based on average annual water
pumped to mains).
BUDGET ACTION REQUIRED: None at this time. These chemicals are budgeted
annually. However, the cost increase may require a budget adjustment at a
later date.
STAFF RECOMMENDATION: Slaff recommends the Mayor and City Commission
endorse the low bid received and enter into a contract with US Aluminate Co.
for aluminum sulfate.
E. Accept Resignations and Make Appointments to Various Boards and
Committees. CITY CLERK
SUMMARY OF REQUEST: To accept resignations from Brenda Loyd, James Davies
and Greg Roberts: and appoint Barbara Vanfossen to the District Library Board,
Ofelia Jimenez to the Equal Opportunity Committee, and Kevin Woods to the
Income Tax Board of Review.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval
COMMITTEE RECOMMENDATION: The Community Relations Committee
recommended approval at their May 5th meeting.
F. Consideration of Bids for Roblane, Quarterline to Marlane (H-1636).
ENGINEERING
SUMMARY OF REQUEST: Award the Roblane reconstruction contract to
Thompson Brothers of 388 McMillan Rd. since they were the lowest responsible
bidder with a total bid price of $85,312.
FINANCIAL IMPACT: The reconstruction cost of $85,312 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Thompson Brothers.
G. Consideration of Bids for Hudson, Barney to Wilson (W-696) and Ireland,
Hudson to Franklin (W-697). ENGINEERING
SUMMARY OF REQUEST: Award the Hudson and Ireland construction contract to
Brenner Excavating out of Hopkins since they were the lowest responsible bidder
with a total bid price of $194,173.10. The contract consists of water main and
services replacement in Hudson and Ireland as per the referenced limits.
FINANCIAL IMPACT: The construction cost of $194,173.10 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Brenner Excavating.
H. Conveyance of Easement to MDEQ. ENGINEERING
SUMMARY OF REQUEST: Convey an easement to MDEQ for the wetland area
north of Shoreline Drive east and west of the Ryerson Creek south of the railroad
tracks as was required by the permit which was issued for the construction of
Shoreline Drive. Also, authorize the Mayor to sign the easement documents.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Authorize the Mayor to sign the easement
documents.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the consent agenda as read.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, and
Gawron
Nays: None
MOTION PASSES
2008-43 PUBLIC HEARINGS:
A. Amendments to Brownfield Plan for Betten Auto Dealerships Project.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of the Betten Auto Dealerships project in the
Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax Increment Financing would be used to
reimburse the developer and the City for Act 381 "eligible expenses" incurred in
association with development of the Betten properties, starting in 2008. The
developers/owners estimate that full development of the Betten properties will
involve over $13 million in private investment (in addition to property
acquisition), resulting in a substantial increase in the city income, and local and
school property taxes generated by the property.
"Eligible expenses" of over $3 million would be reimbursed. The estimated tax
capture schedule is included as Attachment S-3 in the proposed Brownfield Plan
Amendment. The City is also authorized by law to capture up to $75,000/year to
pay for "reasonable and actual administrative and operating costs" of the
Brownfield Redevelopment Authority. As such, $10,000/year of the local tax
increment will be captured to reimburse the Brownfield Authority for its
administrative costs, for the duration of the Brownfield Plan.
After all eligible costs incurred by the parties are reimbursed, the BRA is
authorized to continue to capture local taxes for five more years for deposit into
a Local Site Remediation Revolving Fund. Current tax capture estimates
indicate that approximately $1,048,000 could be captured from the taxes on the
Betten properties for deposit into this local fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for May 13, 2008 at their April 22, 2008 meeting. Since that time, a
notice of the public hearing has been sent to the taxing jurisdictions, MDEQ, and
MEGA of the proposed amendment and its financial impact on each
jurisdiction, and has been published twice in the Muskegon Chronicle. In
addition, the Brownfield Redevelopment Authority approved the Plan
amendment on April 1, 2008 and recommended that the Muskegon City
Commission approve the Plan amendment. The BRA will review the Plan
revisions at their May 13, 2008 meeting and will make an additional
recommendation to the Commission regarding the revised Plan.
The public hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Carter, second by Commissioner Shepherd to close the
public hearing and approve the amendments to the Brownfield Plan for Belten
Auto Dealerships Project.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Gawron, and
Shepherd
Nays: None
MOTION PASSES
2008-44 NEW BUSINESS:
A. MERS Health Care Savings Program (HCSP} for Medicare Eligible
Retirees. FINANCE
SUMMARY OF REQUEST: You may recall that several months ago the City
switched from subsidizing MediGap insurance coverage through a company
called Magna Care to paying an equivalent cash stipend directly to retirees.
This was done both to simplify administration and to give retires greater flexibility
in choosing insurance coverage to best meet their needs. One of the issues that
came up was that, as direct cash payments to the retiree, the stipend would be
subject to federal income tax. Working with MERS we have found a way to
address this issue. This involves the establishment of healthcare savings program
accounts (HCSP) for eligible retirees. Basically, running the money through the
HCSP accounts will allow us to provide the retiree with the same benefit level,
tax-free.
Active non-union and 517M (DPW) employees currently have HCSP accounts
that they will carry into retirement. Additional employee groups are expected
to participate. As these employees attain Medicare eligibility, the need to
maintain separate retiree HCSP accounts will diminish.
FINANCIAL IMPACT: Approximately $3,500/year administrative fee to be paid
from the City's retiree healthcare funding vehicle account at MERS. The cash
stipend option helps to control the City's retiree healthcare obligation. Being
able to make these payments in a tax-advantaged manner will make this
option much more attractive to both current and future retirees.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of three MERS Healthcare Savings Program
Participation Agreements for Medicare eligible retirees receiving cash stipend
for healthcare and/or Rx. The three agreements are structured around whether
the retiree has opted out of medical benefits ($52.08/mo) Rx benefits
($43.08/mo) or both medical and Rx ($93.08/mo).
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the three MERS Healthcare Savings Program Participation Agreements for
Medicare eligible retirees.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Gawron, Shepherd, and
Spataro
Nays: None
MOTION PASSES
B. First Quarter 2008 Budget Reforecast. FINANCE
SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2008
Budget Reforecast which outlines proposed changes to the original budget that
have come about as result of changes in policy priorities, labor contracts,
updated economic conditions, or other factors. For the next meeting, an action
item will be placed on the agenda for adoption of the budget reforecast
together with any additional changes deemed necessary by Commissioners.
FINANCIAL IMPACT: The biggest change is an adjustment of projected income
tax revenues from $6.9 million to ·$7.2 million. This upward adjustment is based on
an analysis of recent collection history and allows us to eliminate from the 2008
budget the projected transfer of $300,000 from the Budget Stabilization fund.
Other revenue items are generally on target with projections as are most
operating budgets. We are, of course, hopeful that the Governor's proposal to
increase revenue sharing by four percent is successful. This would impact the
last three payments (of six) for the City's 2008 fiscal year. Significantly, employee
healthcare coverage was renewed at a 6% increase which is within our budget
projection.
Aside from income tax, the other significant changes to the 2008 budget
included in the first quarter reforecast are in the area of capital improvements.
Most of these changes reflect the reallocation of costs due to failed/withdrawn
special assessment projects.
BUDGET ACTION REQUIRED: Self-explanatory.
STAFF RECOMMENDATION: The City Commission should review the Reforecast to
ensure it reflects their policy initiatives. At the next City Commission meeting,
staff will request formal approval of the Reforecast and related budget
amendments.
No action needed.
C. Brownfield Development and Reimbursement Agreement - Belten.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: As part of the Brownfield Plan and Tax Increment
Finance (TIF) capture for the Betten project, it is necessary to have a
Development Agreement in place. In addition, the document includes a
Reimbursement Agreement for the Site Assessment Loan, in the amount of
$250,000.
FINANCIAL IMPACT: The Agreement will insure that the taxes are captured and
Betten is reimbursed for the agreed upon eligible expenses. In addition, the Site
Assessment Loan will be repaid through the TIF capture in a timely manner.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign the resolution.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the resolution and authorize staff to approve any and all other necessary
documents and authorize the Mayor and/or Clerk to execute such.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, and
Wierengo
Nays: None
MOTION PASSES
D. Dangerous Building - Muskegon Hotel - Bids for Demolition,
INSPECTIONS
SUMMARY OF REQUEST: The Inspection department requests that the City
Commission award a bid for demolition of the property located at 593 W.
Western to the lowest responsible bidder.
FINANCIAL IMPACT: General Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To award the bid to Griffelle in the amount of
$33,999.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the bid for demolition of 593 W. Western Avenue.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, and
Wierengo
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 5:58 p.m.
Respectfully submitted,
\i,v~ \ \Tuc,L, fc.c 1 f'_J_,
1
Ann Marie Becker, MMC
City Clerk
City Commission Meeting
Tuesday May 13, 2008
TO: Honorable Mayor and City Commissioners
FROM: Anthony L. Kleibecker, Director of Public Safety
DA TE: April 29, 2008
SUBJECT: Membership Agreement-Middle Atlantic-Great Lakes Organized Crime
Law Enforcement Network
Summary of Request:
The Director of Public Safety is requesting approval to enter into a membership
agreement with the Middle Atlantic-Great Lakes Organized Crime Law Enforcement
Network (MAGLOCLEN). MAGLOCLEN facilitates interjurisdictional information and
intelligence exchange, in addition to providing analytical and technical support to aid
member agencies in their efforts to identify and apprehend organized criminals and
criminal groups across jurisdictional boundaries. Annual cost of the membership is $350.
Financial Impact:
None
Budget Action Required:
None
Staff Recommendation:
Approval of the agreement.
AGREEMENT
THIS AGREEMENT, made t h i s ~ - - - day of _ _ _ _ _ _ _ _ _ _ _ _20
b-etween the Middle Atlantic - Great Lakes Organized Crime Law Enforcement Network (the
"Association") which was established in 1981 by the following original member agencies, the
Delaware State Police, Indiana State Police, Maryland State Police, New Jersey State
.commission of Investigation, New Jersey State Police, New York County District Attorney's
Office, New York State Organized Crime Task Force, New York State Police, Pennsylvania
Crime Commission, and the Pennsylvania State Police, and any member agency subsequently
added in accordance with the Association's Bylaws ("member agencies"), and
("THE AGENCY")
pr<;>vides. that:
WHEREAS, the Association and the Agency recognize the serious problems posed by the
continuing presence and growth of organized criminal activities in our society; and
WHEREAS, the Agency recognizes that it has the legal and equitable obligation to investigate
this criminal activity for the purposes of preventing future criminal activity or of seeing proven
offenders brought to justice; and
WHEREAS, the Agency recognizes that the nature of this criminal activity necessitates the
.structured cooperation of.the Agency and the Association in order for the Agency to meet its
legal and equitable obligation,
THEREFORE, it is agreed that:
FIRST: The Agency will regularly contribute information to a pointer information system to be
developed and maintained by the Association.
SECOND: The Agency will cooperate with other member agencies in activities undertaken to
further the goals and policies of the Association when the Agency is reasonably called upon to
do so by an act, decision or resolution of the Policy Board.
THIRD: The Agency will abide by the decisions of the Association's Policy Board, as
determined by vote of the Board in accordance with the Association's Bylaws.
FOURTH: The Agency agrees to abide by the Association's Bylaws, and any amendment to
the Bylaws which are duly made.
FIFTH: The Agency agrees to participate in the Association in compliance with 28 CFR 23 of
the United States Federal Criminal Intelligence Systems Operating Policies.
SIXTH: The Pennsylvania Office of Attorney General as Grantee of the Association nor the
Agency accepts liability for damages resulting from the acts of agents. of individual members of
the Association. Each agency accepts liability for damages resulting from the acts of its own
agents to the extent covered by applicable law. However, to the extent consistent with
applicable sovereign immunity laws, the Grantee accepts liability for damages resulting from
the acts of its agents only. ·
SEVENTH: Notwithstanding any other provision of this agreement, the Agency is not required
to take any action which is contrary to any applicable statute, law or regulation, or contrary to ·
the best interests and priorities of the Agency as determined by the Agency.
The Agency agrees that the terms of this Agreement are binding between the Agency and the
Association and also between the Agency and each Association member agency which signs or
has signed an Agreement containing the tenns of this Agreement. Accordingly, the Agency
agrees with the Association and with each Association member agency to abide by the terms of
this Agreement. ·
This Agreement shall remain in force until. such time as the Association is dissolved by three-
quarters vote of the Association's Policy Board, or until such time as the Agency withdraw&, or
until such time as the Agency is removed from the Association in accordance with procedures
contained in the Association's Bylaws.
Chairman
The Middle Atlantic-Great Lakes Organized Crime
Law Enforcement Network Association
Signature
Chief Executive Officer
Agency
Rev. 12/6/97
01/13/00
Date: May 13, 2008
To: Honorable Mayor and City Commission
From: Water Filtration Plant
RE: 2008 Water Treatment Chemical Bids
SUMMARY OF REQUEST:
Recommend endorsement of lowest responsible bidder to supply
hydrofluorosilic acid - fluoride for the water filtration plant
FINANCIAL IMPACT:
Annual cost of $44,450.00 (based on average annual water pumped to
mains).
BUDGET ACTION REQUIRED:
None at this time. These chemicals are budgeted annually. However
the cost increase may require a budget adjustment at a later date.
STAFF RECOMMENDATION:
Staff recommends the Mayor and City Commission endorse the low bid
received and enter into contract with Lucier Chemical Incorporated (LCI)
for fluoride.
MEMORANDUM
5/6/08
TO: M. AL-SHA TEL, DEPUTY DIRECTOR
FROM: R. VENEKLASEN, WATER FILTRATION SUPERVISOR
RE: FLUORIDE (HYDROFLUORISILIC ACID)
HISTORY
Fluoride is applied to the water being treated to enhance the prevention of dental caries
(cavaties). In 1955 Muskegon was the control sample for the City of Grand Rapids when
they became the first city to apply fluoride for improved dental health. The test was to
run for ten-years but was abandoned after about five-years because the results were so
compelling. That is when the application of fluoride began in Muskegon.
We bid fluoride similarly to aluminum sulfate - in a cooperative effort with Holland,
Wyoming, Grand Rapids, Grand Haven, and Muskegon Heights - through the City of
Grand Rapids purchasing department.
CONDITIONS
As with the previous chemical bids, it was anticipated there would be a significant
increase in the cost of fluoride for a couple of obvious reasons. First, the increase in fuel
costs for transport. Second, fluoride has been more difficult to procure for the past year.
In fact, we must order a minimum of thirty days in advance of our need. On a couple of
occasions the lead time has been six-weeks. The bids received reflect an 83% increase
in cost from last year.
BIDS AND RECOMMENDATION
Attached is a bid tabulation sheet. Note that only two companies participated in the
bidding this year. The lowest responsible bidder is our present supplier; Lucier Chemical
Incorporated (LCI).
It is my recommendation that the Mayor and City Commission endorse the lowest
responsible bidder, Lucier Chemical Inc. (LC!) and enter into a one-year contract to
supply fluoride for the Water Filtration Plant at a cost of $635.00 per ton FOB.
FOR REFERENCE IJSE ONLY
BID TAB
BID REFnsss-ss-o, ITl;M1A ll EM 1B .'Yf~1C ,g:;~ 2
BID OPENING DArn: MAY 2, 2008 420 'rQ"" 420TONS 4 'f•NS EM ENCY
FOR: HYDROFLUORISILIC ACID HYDRO· HYDRO• HYDRO· AS NEEDED
BUYER: ~e~y
# BIDDERS SOLICITED: 10
nr:::op L
WOJC~~~OWSKI
r::n TghT N
FLUOR~ILIC FLU•-"" IC FLU•-"'LIC
!-2!?.. ..A2PN !-21.f!..
DELIVERY
c~:::,-i;
LlllHID 111\11
YEAR1
YEARZ
V""R 3
•e•s.oo •636.00 <635.00 •15 388.00
LCILrD
NB NB NB NB
NB NB NB ....
•s7o.oo <870.00 •870.00 $350.00
ALEXANDER CHEMICAL
NB NB NB NB
N" "B NB NB
SOLVAY FLUORIDES NB
PENCCOINC NB
FOR REFERENCE USE ONLY
BID TAB
BID REF #885-66-06 SUBMITTAL DISCOUrio: DISCOUNT: DISCOUNT: DIS-,vvN,: DISCOUNT: DISCOUNT:
BID OPENING DATE: IIIIAY 2, 2008
FOR: HYDROFLUORlSILIC ACID LITERATURE 2m,TIER JOlru _,
WORKFW::T• 1 .,,., FIL
YEAR1
YEAR2
y,,,,, '
•~o
LCILTD YE~
"'"
ALEXANDER CHEMICAL
SOLVAY FLUORIDES
PENCCOfNC
Date: May 13, 2008
To: Honorable Mayor and City Commission
From: Water Filtration Plant
RE: 2008 Water Treatment Chemical Bids
SUMMARY OF REQUEST:
Recommend endorsement of lowest responsible bidder to supply
aluminum sulfate for the water filtration plant
FINANCIAL IMPACT:
Annual cost of $74645.00 (based on average annual water pumped to
mains).
BUDGET ACTION REQUIRED:
None at this time. These chemicals are budgeted annually. However
the cost increase may require a budget adjustment at a later date.
STAFF RECOMMENDATION:
Staff recommends the Mayor and City Commission endorse the low bid
received and enter into contract with US Aluminate Co. (USALCO) for
aluminum sulfate.
MEMORANDUM
5/1/08
TO: M. AL-SHATEL, DEPUTY DIRECTOR
FROM: R. VENEKLASEN, WATER FILTRATION SUPV
RE: ANNUAL ALUMINUM SULFATE (ALUM) BID
PURPOSE
Aluminum sulfate, or alum, is the coagulant used at the Water Filtration Plant to
remove the material suspended in the raw, Lake Michigan, water being treated.
The suspended particles are attracted to the alum molecules, the particles and
molecules agglomerate, then settle by gravity.
HISTORY
We have been bidding alum in conjunction with the cities of Holland, Wyoming,
Grand Rapids, Grand Haven, and Muskegon Heights. The City of Grand Rapids
purchasing department performs the bidding process on behalf of the other
municipalities.
Similarly to the recent sodium hypochlorite bid, alum was bid separately from the
other chemicals due to various reasons such as advantageous contract
extensions.
CONDITIONS
It was anticipated the chemical costs would rise in 2008 due to increased
transportation costs and the global market. In the case of Alum, the global
market has a high demand for sulfuric acid - an integral component of alum. The
result is a cost increase of approximately 75% from last year - $202.08 to
$355.45 per ton.
BIDS AND RECOMMENDATION
Attached is the bid tabulation sheet. Please note that only two manufacturers
elected to bid with the low bid being our current supplier.
It is my recommendation that the Mayor and City Commission endorse the lowest
responsible bidder, US Aluminate Company (USALCO) and enter into a one-year
contract to supply aluminum sulfate for the Water Filtration Plant at a cost of
$355.45 per ton FOB.
FOR REFERENCE USE ONLY
BID TAB
BID Re, eo85•77-10 ITEM 1A ITEM 1B ITE :1c ITEM2
BID OPENING DATE: APRIL 22, 2008 =oToNs: 1170 TflNS: 2oooro• ·llUISITION TAX TARGET
BUYER: TONY WOJCIAKOWSKI INCENTIVE AREA
DEPT• 1 'KR FIL
YEAR1
YEAR2
VCH>3
r-r\RtU'\L
GENERAL CHEMICAL
•~v
US ALUMINATE CO (USALCO) YcS
CHRYSAN INDUSTRIES
C & S CHEMICAL
Date: May 13, 2008
To: Honorable Mayor and City Commissioners
From: City Clerk
RE: Accept Resignations and Make Appointments to
Various Boards and Committees
SUMMARY OF REQUEST: To accept resignations from Brenda Loyd, James Davies and
Greg Roberts; and appoint Barbara VanFossen to the District Library Board, Ofelia Jimenez
to the Equal Opportunity Committee, and Kevin Woods to the Income Tax Board of Review.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
COMMITTEE RECOMMENDATION: The Community Relations Committee recommended
approval at their May 5th meeting.
Date: May 13, 2008
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Consideration of Bids for:
Roblane, Quarterline to Marlane (H-1636)
SUMMARY OF REQUEST:
Award the Roblane reconstruction contract to Thompson Brothers of 388 McMillan Rd.
since they were the lowest responsible bidder with a total bid price of $85,312, see
attached bid tabulation.
FINANCIAL IMPACT:
The reconstruction cost of $85,312 plus engineering cost which is estimated at an
additional 15%.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Award the contract to Thompson Brothers
COMMITTEE RECOMMENDATION:
O:\ENGINEERING\COMMON\2008 PROJECTS MASTER\PROJECTS\ROB LANEICONAWA rob lane 05-13-08.doc
H· 1636 ROBLANE AVE., QUARTERLINE RD. TO MARLANE ST.
BID TABULATION - 04/15/08
CONTRACTOR SCHIPPERS EXC., INC. CL TRUCKING & EXC., LLC KAMMINGA & ROODVOETt rvADEL STABILIZATION, IN( VAN'S CONTRACTING EE'S TRENCHING SVC, IN(
ADDRESS 9829 LAKE MICHIGAN DR. 256 PARMETER RD. 435 BROADMOOR AVE., S 2500 N. OCEANA DR. 41 E. CLEVELAND 120176TH ST. SW
CITY/ST/ZIP WEST OLIVE, Ml 49460 IONIA, Ml 48846 GRAND RAPIDS Ml 49512 HART, Ml 49420 COOPERSVILLE Ml 49404 BYRON CENTER, Ml 493'15
ITEM OF WORK UNIT QTY UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
AGGREGATE BASE, 6 INCH SYD 1550 $ 4.75 $ 7,362.50 $ 3,80 $ 5,890.00 $ 5.25 $ 8,137.50 $ 6.50 $ 10,075.00 $ 4.85 $ 7,517.50 $ 4.90 $ 7,595.00
CATCH BASIN SPECIAL DETAIL EACH 4 $ 1,500.00 $ 6,000.00 $ 1,185.00 $ 4,740.00 $ 1,000.00 $ 4,000.00 $ 1,450.00 $ 5,800.00 $ 1,350.00 $ 5,400.00 $ 1,035.00 $ 4,140.00
CURB AND GUTTER, STD, DET 1 FT 1061 $ 9.00 $ 9,549.00 $ 8.75 $ 9,283.75 $ 13.35 $ 14,164.35 $ 15.50 $ 16,445.50 $ 15.00 $ 15,915.00 $ 15.70 $ 16,657.70
DR STRUCTURE COVER, ADJ, CASE 1 EACH 1 $ 575.00 $ 575.00 $ 330.00 $ 330.00 $ 360.00 $ 360.00 $ 550.00 $ 550.00 $ 450.00 $ 450.00 $ 370.00 $ 370.00
DR STRUCTURE COVER, MODIFIED LB 4600 $ 1.20 $ 5,520.00 S 1.25 $ 5,750.00 $ 1.50 $ 6,900.00 $ 1.30 $ 5,980.00 $ 1.30 $ 5,980.00 $ 1.25 $ 5,750.00
DRIVEWAY, NONREINF CONC, 6 INCH, MODIFIE SYD 81 $ 26.00 $ 2,106.00 $ 26.40 $ 2,138.40 $ 30.00 $ 2,430.00 $ 33.SO $ 2,713.50 $ 46.44 $ 3,761.64 $ 39.25 $ 3,179.25
HMA,3C TON 140 $ 66.50 $ 9,310.00 $ 63.35 $ 8,869.00 $ 63.35 $ 8,869.00 $ 64.00 $ 8,960.00 $ 81.12 $ 11,356.80 $ 73.50 $ 10,290.00
HMA,4C TON 140 $ 72.50 $ 10,150.00 $ 68.98 $ 9,657.20 $ 68.98 $ 9,657.20 $ 69.00 $ 9,660.00 $ 87.12 $ 12,196.80 S 73.50 $ 10,290.00
HVDROSEEDING SYD 700 $ 1.00 $ 700.00 $ 0.70 $ 490.00 $ 0.75 $ 525.00 $ 1.00 $ 700.00 $ 1.25 $ 875.00 S 1.05 $ 735.00
l MACHINE GRADING, MODIFIED STA 5.45 $ 2,500.00 $ 13,625.00 $ 1,055.00 $ 5,749.75 $ 1,200.00 $ 6,540.00 S 1,250.00 $ 6,812.50 $ 1,750.00 $ 9,537.50 $ 1,400.00 $ 7,630.00
I MANHOLE SPECIAL DETAIL EACH 7 $ 1,400.00 $ 9,800.00 $ 1,495.00 $ 10,465.00 $ 1,600.00 $ 11,200.00 $ 1,450.00 $ 10,150.00 $ 1,550.00 $ 10,850.00 $ 1,160.00 $ 8,120.00
! PAVE, REM, MODIFIED SYD 1347 $ 2.50 $ 3,367.50 $ 4.05 $ 5,455.35 $ 4.00 $ 5,388.00 $ 5.50 $ 7,408.50 $ 4.68 $ 6,303.96 $ 2.75 $ 3,704.25
! PLUG, CL C76 V, 15 lNCH EACH 2 $ 150.00 $ 300.00 $ 205.00 $ 410.00 $ 300.00 $ 600.00 $ 150.00 $ 300.00 $ 250.00 $ 500.00 S 150.00 $ 300.00
I SEWER,CLC76V,121NCH FT 54 $ 24.00 $ 1,296.00 $ 33.00 $ 1,782.00 $ 32.00 $ 1,728.00 $ 31.50 $ 1,701.00 $ 27.74 $ 1,497.96 S 38.60 $ 2,084.40
i SEWER,CLC76V,151NCH FT 578 $ 26.00 $ 15,028.00 $ 40.00 $ 23,120.00 $ 36.00 $ 20,808.00 $ 33.50 $ 19,363.00 $ 30.56 $ '17,663.68 $ 51.25 $ 29,622.50
i SEWER, CL C76, 18 lNCH FT 8 $ 30.00 $ 240.00 $ 83.00 $ 664.00 $ 69.00 $ 552.00 $ 50.00 $ 400.00 $ 62.73 $ 501.84 $ 460.00 $ 3,680.00
' SIDEWALK, CONC, 6 INCH SFT 340 $ 3.00 $ 1,020.00 $ 2.85 $ 969.00 $ 3.40 $ 1,156.00 $ 3.20 $ 1,088.00 $ 5.16 $ 1,754.40 $ 5.35 $ 1,819.00
l TOPSOIL SURFACE, FURN, 4 INCH SYD 700 $ 4.00 $ 2,800.00 $ 2.20 $ 1,540.00 $ 3.00 $ 2,100.00 $ 3.50 $ 2,450.00 $ 5.50 $ 3,850.00 $ 1.85 $ 1,295.00
I TRAFFIC CONTROL LS 1 $ 2,000.00 $ 2,000.00 $ 4,600.00 $ 4,600.00 $ 4,800.00 $ 4,800.00 $ 3,500.00 $ 3,500.00 $ 1,718.00 $ 1,718.00 $ 1,255.00 $ 1,255.00
I WATER VALVE BAX AND COVER, COMPLETE EACH 3 $ 200.00 $ 600.00 $ 210.00 $ 630.00 $ 380.00 $ 1,140.00 $ 350.00 $ i,050.00 $ 300.00 $ 900.00 $ 375.00 $ i,125.00
TOTAL $1 Oi ,349.00 $102,533.45 $111,055.05 $115,107.00 $118,530.08 $119,642.10
H- 1636 ROBLANE AVE., QUARTERLINE RD. TO MARLANE ST.
BID TABULATION - 04/15/08
CONTRACTOR THOMPSON BROS, INC. ACKSON-MERKEY CONTR, IN BRENNER EXC, INC. JACK DYKSTRA EXC., INC. FELCO CONTRACTORS, IN MCCORMICK SAND, INC.
ADDRESS 388 W. MCMILLAN RD. 555 E. WESTERN AVE. 284'1 '132ND AVE. 3677 3 MILE RD. NW 856 PULASKI AVE. 5430 RUSSELL RD.
CITY/ST/ZIP MUSKEGON, Ml 49445 MUSKEGON, Ml 49441 HOPKINS, Ml 49328 GRANO RAPIDS, Ml 49534 MUSKEGON Ml 49441 TWIN LAKE, Ml 49457
ITEM OF WORK UNIT QTY UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
1 AGGREGATE BASE, 6 INCH SYD 1550 $4.80 $7,440.00 $5.50 $8,525.00 $4.80 $7,440.00 $6.70 $10,385.00 $4.90 $7,595.00 S 5.18 $ 8,029.00
2 CATCH BASIN SPECIAL DETAIL EACH 4 $1,274.00 $5,096.00 $960.00 $3,840.00 $1,260.00 $5,040.00 $1,170.00 $4,680.00 $1,100.00 $4,400.00 $ 1,400.00 $ 5,600.00
3 CURB AND GUTTER, STD, DET 1 FT 1061 $10.50 $11,140.50 $10.35 $10,981.35 $9.75 $10,344.75 $9.05 $9,602.05 $9.15 $9,708.15 $ 8.05 $ 8,541.05
4 DR STRUCTURE COVER, ADJ, CASE 1 EACH 1 $300.00 $300.00 $1,070.00 $1,070.00 $554.00 $554.00 $250.00 $250.00 $300.00 $300:00 $ 500.00 $ 500.00
5 DR STRUCTURE COVER, MODIFIED LB 4600 $1.25 $5,750.00 $1.80 ·$8,280.00 $1.60 $7,360.00 $1.20 $5,520.00 $1.05 $4,830.00 $ 1.75 $ 8,050.00
6 DRIVEWAY, NONREINF CONC, 6 INCH, MODIFIE[ SYD 81 $24.00 $1,944.00 $25.80 $2,089.80 $28.30 $2,292.30 $24.45 $1,980.45 $30.00 $2,430.00 $ 23.45 $ 1,899.45
7 HMA,3C TON 140 $64.00 $8,960.00 $63.35 $8,869.00 $67.00 $9,380.00 $64.00 $8,960.00 $65.00 $9,100.00 $ 63.35 $ 8,869.00
8 HMA,4C TON 140 $69.00 $9,660.00 $69.00 $9,660.00 $73.00 $10,220.00 $69.00 $9,660.00 $70.00 $9,800.00 $ 68.98 S 9,657.20
9 HYDROSEEDING SYD 700 $1.43 $1,001.00 $0.75 $525.00 $1.00 $700.00 $1.00 $700.00 $3.00 $2,100.00 $ 0.57 $ 399.00
10 MACHINE GRADING, MODIFIED STA 5.45 $700.00 $3,815.00 $920.00 $5,014.00 $882.00 $4,806.90 $2,000.00 $10,900.00 $1,500.00 $8,175.00 $ 1,142.75 $ 6,227.99
11 MANHOLE SPECIAL DETAIL EACH 7 $1,428.00 $9,996.00 $1,070.00 $7,490.00 $1,190.00 $8,330.00 $1,020.00 $7,140.00 $1,400.00 $9,800.00 $ 1,693.00 $ 11,851.00
12 PAVE, REM, MODIFIED SYD 1347 $0.50 $673.50 $3.30 $4,445.10 $3.50 $4,714.50 $4.00 $5,388.00 $2.00 $2,694.00 $ 1.73 $ 2,330.31
13 PLUG, CL C76 V, 15 lNCH EACH 2 $250.00 $500.00 $150.00 $300.00 $118.00 $236.00 $75.00 $150.00 $400.00 $800.00 $ 74.00 $ 148.00
!4 SEWER, CL C76 V, 12 INCH FT 54 $20.00 $1,080.00 $36.60 $1,976.40 $23.00 $1,242.00 $21.25 $1,'147.50 $28.00 $1,512.00 $ 22.91 $ 1,237:14
15 SEWER, Cl C76 V, 15 INCH FT 578 $21.50 $12,427.00 $33.50 $19,363.00 $25.00 $14,450.00 $25.75 $14,883.50 $32.00 $18,496.00 $ 31.33 $ 18,108.74
16 SEWER, Cl C76, 18 INCH FT 8 $28.00 $224.00 $42.80 $342.40 $34.00 $272.00 $30.00 $240.00 $50.00 $400.00 $ 60.41 $ 483.28
17 SIDEWALK, CONC, 6 INCH SFT 340 $3.00 $1,020.00 $2.95 $1,003.00 $3.20 $1,088.00 $2.85 $969.00 $4.00 $1,360.00 $ 2.65 $ 901.00
18 TOPSOIL SURFACE, FURN, 4 INCH SYD 700 $2.00 $1,400.00 $4.00 $2,800.00 $2.30 $1,610.00 $4.50 $3,150.00 $6.00 $4,200.00 $ 5.13 $ 3,591.00
9 TRAFFIC CONTROL LS 1 $1,775.00 $1,775.00 $1,310.00 $1,310.00 $8,000.00 $8,000.00 $3,000.00 $3,000.00 $2,000.00 $2,000.00 $ 4,271.00 $ 4,271.00
10 WATER VALVE BAX AND COVER, COMPLETE EACH 3 $370.00 $1,110.00 $310.00 $930.00 $363.00 $1,089.00 $320.00 $960.00 $200.00 $600.00 $ 208.00 $ 624.00
TOTAL $85,312.00 $98,8'14.05 $99,169.45 $99,665.50 $'100,300.15 $101,318.16
Date: May 13, 2008
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Consideration of Bids for:
Hudson, Barney to Wilson 0/V- 696) &
Ireland, Hudson to Franklin 0JV-697)
SUMMARY OF REQUEST:
Award the Hudson & Ireland construction contract to Brenner Excavating out of Hopkins
since they were the lowest responsible bidder with a total bid price of $194,173.10, see
attached bid tabulation. The contract consists of water main & services replacement in
Hudson & Ireland as per the referenced limits.
FINANCIAL IMPACT:
The construction cost of $194,173.10 plus engineering cost which is estimated at an
additional 15%.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Award the contract to Brenner Excavating.
COMMITTEE RECOMMENDATION:
O:IENGINEERING\COMMON\2008 PROJECTS MASTER\PROJECTS\IRELAND\WORD\CONAWA Ireland & Hudson 05-13-
08.doc
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Date: May 13, 2008
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Conveyance of Easement to MDEQ
SUMMARY OF REQUEST:
Convey an easement to MDEQ for the wetland area north of Shoreline Dr. east &
west of the Ryerson Creek south of the rail road tracks as was required by the permit
which was issued for the construction of Shoreline Drive. Also, authorize the Mayor
to sign the easement documents.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
Authorize the Mayor to sign the easement documents.
COMMITTEE RECOMMENDATION:
Received & Sealed For Record
MARK F. FAIRCMILD REGISTER OF DEEDS
Muskegon Counly Michigan
03/30/2009 11:50A LIBER 3806 PAGE 155
IIll 111111111111111111 111111 k!~}g~~
Mark Fa.1rchdd I Muskegon Co ROD 034 Page: 1 of 10 ·
S~A
AGREEMENT FOR
CONSERVATION EASEMENT
(This instrument is exempt from County and State transfer
taxes pursuant to MCL 207.505(a) and MCL 207.526(a), respectively)
This CONSERVATION EASEMENT is created l'fl¾ l "/ , 2oo8, by and between
the City of Muskegon, municipality whose address
is 933 Terrace Street, Muskegon, Michigan 49440 (Grantor) and the Michigan Department of Environmental
st
Quality (MDEQ), whose address is, Constitution Hall, 1 Floor South, P.O. Box 30458, Lansing, Michigan
48909-7958; or 525 West Allegan Street, Lansing, Michigan 48933 (Grantee);
The Gran tor is the fee simple title holder of real property located in the City of
Muskegon, Muskegon County, and State of Michigan, legally described in Exhibit A
MDEQ is the agency charged with administering Part 303, Wetlands Protection, of the Natural Resources and
Environmental Protection Act, 1994 PA 451, as amended (NREPA), and
Permittee/Grantor has applied for a Permit (MDEQ File Number 01-61-0045-P) pursuant to Part 303 to
authorize activities that will impact regulated wetland. The MDEQ evaluated the permit application and
determined that a permit could be authorized for certain activities within regulated wetlands provided certain
conditions are met, and
Permittee/Grantor has agreed to grant the MDEQ a Conservation Easement that protects the wetland
mitigation site and/or the remaining wetlands on the property and restricts further development to the area
legally described in Exhibit B. The Conservation Easement (the Easement Premises) consists of
approximately 0.30, acres. A survey map depicting the easement premises is attached as Exhibit C. The
MDEQ shall record this Agreement with the county register of deeds.
ACCORDINGLY, Grantor conveys this Conservation Easement to Grantee pursuant to Subpart 11 of Part 21,
Conservation and Historic Preservation Easement, of the NREPA, MCL 324.2140 et seq., on the terms and
conditions stated below.
1. The purpose of this Agreement is to protect the functions and values of existing or established wetlands
and its natural resource values on the Easement Premises consistent with the Permit and the protection
of the benefits to the public derived from wetlands and integral habitat, by requiring Grantor to maintain
the Easement Premises in its natural and undeveloped condition.
2. Except as authorized under MDEQ Permit Number 01-61-0045-P issued on _ l / :li /20 • ::i. or as
otherwise provided in this Agreement, Granter shall refrain from, and prevent any other person from
altering or developing the Easement Premises in any way. This includes, but is not limited to:
1
a) Alteration of the topography;
b) Creation of paths, trails, or roads;
c) The placement of fill material as defined in Part 303 of the NREPA, MCL 324.30301 et seq., as
amended;
d) Dredging, removal, or excavation of any soil or minerals;
e) Drainage of surface or groundwater;
f) Construction or placement of any structure;
g) Plowing, tilling, or cultivating the soils or vegetation;
h} Alteration or removal of vegetation, including the planting of non-native species;
i) Ranching
j) Construction of unauthorized utility or petroleum lines;
k) Storage or disposal of garbage, trash, debris, abandoned equipment or accumulation of machinery,
or other waste materials, including accumulated vegetative debris such as grass clippings, leaves,
yard waste, or other material collected and deposited from areas outside the Easement Premises;
I) Use or storage of off-road vehicles including, but not limited to, snowmobiles, dune buggies, all-
terrain vehicles, and motorcycles;
m) Placement of billboards or signage, except as otherwise allowed in the Permit or this Agreement;
n) Use of the wetland for the dumping of untreated stormwater at a volume that adversely impacts the
hydrology of the wetland.
3. Cutting down, destroying, or otherwise altering or removing trees, tree limbs, shrubs, or other vegetation,
whether living or dead, is prohibited within the Easement Premises, except with the written permission of
Grantee, expressly for the removal of trees or limbs to eliminate danger to health and safety; to reduce a
threat of infestation posed by diseased vegetation; or to control invasive non-native plant species that
endanger the health of native species.
4. Granter is not required to restore the Easement Premises due to alterations resulting from causes beyond
the owner's control, including, but not limited to, unauthorized actions by third parties that were not
reasonably foreseeable; or natural disasters such as unintentional fires, floods, storms, or natural earth
movement.
5. Granter may perform activities within the Easement Premises consistent with the Permit or the mitigation
requirements. Granter shall provide 5 days notice of undertaking any mitigation activity even if the
mitigation project has been conceptually approved. Any activities undertaken pursuant to the Permit, a
mitigation project, or this Agreement, shall be performed in a manner to minimize the adverse impacts to
existing wetland or mitigation areas.
6. Granter warrants that Granter has good and sufficient title to the Ease_ment Premises described in
Exhibit B.
7. Grantor warrants that any other existing interests or encumbrances in the Easement Premises have been
disclosed to the M DEO.
8. Granter warrants that to the best of Grantor's knowledge no hazardous substances or hazardous or toxic
wastes have been generated, treated, stored, used, disposed of, or deposited in or on the property.
9. This Agreement does not grant or convey to Grantee or members of the general public any right to
possession or use of the Easement Premises.
10. Granter shall continue to have all rights and responsibilities as owner of the property subject to this
Agreement. Granter shall continue to be solely responsible for the upkeep and maintenance of the
Easement Premises, to the extent it may be required by law. ·
11. Grantee and its authorized employees and agents may enter the Easement Premises upon reasonable
notice to Granter to determine whether the Easement Premises are being maintained in compliance with
the terms of this Agreement, mitigation, or other conditions of the Permit; and for the purpose of taking
.. ·-·- --'-'•·- __ .. : ___ l-- e-: 1, ·-~ i,... ,..,.........,nh, If r-Mntac. ic. antarinn the easement premises for purposes of
11111111111111111111111111111 IIIII IIIII Ill 1111111111111 r-~~l~~ 1
taking corrective actions, Granter shall be provided with 14 days notice to provide the opportunity to cure
the failure to comply.
12. This Agreement shall be binding upon the successors and assigns of the parties and shall run with the
land in perpetuity unless modified or terminated by written agreement of the parties.
13. This Agreement may be modified only in writing through amendment of the Agreement. Any modification
shall be consistent with the purpose and intent of the Agreement.
14. This Agreement may be enforced by either an action at law or in equity and shall be enforceable against
any person claiming an interest in the Easement Premises despite a lack of privily of estate or contract.
15. Grantor shall indicate the existence of this Agreement on all future deeds, mortgages, land contracts,
plats, and any other legal instrument used to convey an interest in the Easement Premises.
16. A delay in enforcement shall not be construed as a waiver of the Grantee's rights to enforce the
conditions of this Agreement.
17. This Agreement shall be liberally construed in favor of maintaining the purpose of the Conservation
Easement.
18. If any portion of this Agreement is determined to be invalid by a court of law, the remaining provisions will
remain in force.
19. This Agreement will be construed in accordance with Michigan law.
20. In addition to the terms of the Permit issued by Grantee, this document sets forth the entire agreement of
the parties. It is intended to supercede all prior discussions or understandings.
21. Within 90 days after this Agreement is executed, Granter shall place and maintain at Grantor's expense,
signs, fences, or other suitable markings along the Easement Premises to clearly demarcate the
boundary of the Easement Premises.
LIST OF ATTACHED EXHIBITS
Exhibit A: A legal description of the Grantor's property, inclusive of the Easement Premises.
Exhibit B: A legal description of the Easement Premises.
Exhibit C: A survey map depicting the Easement Premises that also includes identifiable landmarks
such as nearby roads to clearly identify the easement site.
Exhibit D: A legal description that provides a path of legal access to the Easement Premises and a map
that indicates this access site that MDEQ staff will use for ingress and egress to and from the
Easement Premises; or if the Easement is directly connected to a publicly accessible point,
such as a public road, a statement is required that authorizes MDEQ staff ingress and egress
to and from the Easement Premises with a map that clearly indicates the connection of the
public access site to the Easement Premises.
5307261
L-3806 P-155
1111111111111111 IIII II
Mark Fairchild, Muskegon Co ROD 034
03/30/2009 11:50A
Pase: 3 of 10
IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. In signing
this Agreement, the Signatory warrants that he or she has the authority to convey the Conservation Easement
on behalf of the Gran tor.
-----==--
rfor the City of Muskegon
STATE OF MICHIGAN }
} ss
COUNTY OF tv1,5~"'.)'"'}
IF SIGNING ON BEHALF OF AN ORGANIZATION, THIS MUST BE COMPLETED:
The foregoing instrument was acknowledged before me this Jj_ day of /1Jo. 1./.
(1/
, 2orJJ'
by Stephen J. Warmington, the City Mayor
of the City of Muskegon, a Municipality in the state of Michigan.
ciJIJ1&J IU!u
(Signature of Notary Public)
l.,nJ/;1 /Jo ffc./'"
(Typed or Printed name of Notary Public)
-~t?J~tA~s~£~2i,:-.Z~o~a,______ County, Michigan
Acting in:
My Commission Expires: -~9~-cJ='_S_-~o'l~'~O~/.~'//_-----
( c,MM,J~ IS'-" Hers ¥.<8'°"" CocN"\~
(OR) IF SIGNING AS AN INDIVIDUAL OR MARRIED PERSON, THIS MUST BE COMPLETED:
The foregoing instrument was acknowledged before me this _ _ day of _ _ _ _ _~ 20_
by _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ (name[s]) _ _ _ _ _ _ _ _ (marital status).
(Signature of Notary Public)
(Typed or Printed name of Notary Public)
Acting in: _ _ _ _ _ _ _ _ _ _ _ _ County, Michigan
My Commission Expires: _ _ _ _ _ _ _ _ _ _ __
1111111111111111 111111 Page:
Mark Fairchild, Muskeaon Co ROD 034
~!;J~rs5~A
4 of 10 ·
GRANTEE:
STATE OF MICHIGAN
DEPARTMENT OF ENVIRONMENTAL QUALITY
LAND AND WATER MANAGEMENT DIVISION
~~___, /•'L n~
/Eiizabet%owoo, Acting Division Chief
STATE OF MICHIGAN}
} ss
COUNTY OF INGHAM}
-t-l-..
The foregoing instrument was acknowledged before me this~ day of Q f" M ck 20 0 . q
by Elizabeth M. Browne, Acting Division Chief, Land and Water Management Division, State of Michigan, on
behalf of the Michigan Department of Environmental Quality.
LYNDA KAY JONES
NOTARY PUBLIC • STATE OF MICHIGAN
COUNTY OF CLINTON
My Commission Exp.!£11§._0ct. l, 20~3
Atflflg In the County of I r-. a r,CLl::D-..
1__) Acting in: Ingham County, Michigan
3___
My Commission Expires: _ _)_o=--;/~0_1__,/_,).,_0_I
I I
AFTER RECORDING, RETURN TO:
Form Drafted By:
The Honorable Mike Cox, Attorney General
Department of Attorney General Michigan Department of Environmental Quality
Environment, Natural Resources, and Land and Water Management Division
st
Agriculture Division ~
1
Constitution Hall, 1 Floor South
P.O. Box 30755 ~ P.O. Box 30458
Lansing, Michigan 48909 Qc Lansing, Michigan 48909-7958
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EXHIBIT B
CONSERVATION EASEMENT - OESCRIPTION.txt
Easement#1
Conservation Easement - west of Ryerson creek
An easement for conservation purposes located in Block 554 of
the Revised Plat of 1903 of the City of Muskegon (recorded in
Liber 3 of Plats, Page 71),City of Muskegon, Muskegon county,
State of Michigan described as follows
commencing at the most southerly corner of Block 556;
thence North 58A27'32" East 417.80 feet along the Northwesterly line of
lvestern Avenue;
thence North 58A23'09" East 698.10 feet along the Northwesterly line of
Western Avenue;
thence Nor·th 04Al7 '03" East 79. 03 feet to point "A" of the shoreline
Drive easement;
sa·id point "A" also being located as follows:
commence at the southwest Corner of section 30, Town 10 North, Range 16 west;
thence south 88A05'48" East 827.55 feet along the south line of said Section;
thence North 02Al7'47" East 2509.76 feet along the construction centerline
of u.s. 31-BR (seaway Drive);
thence North 40A30' 01" East 6393. 80 feet to the point ca11 ed "A";
thence North 72A28' 00" west 37. 40 feet to the POINT OF BEGINNING of the
conservation easement;
the shoreline Drive easement;
thence North 85A53 00 west 227.28 feet along
1 11
Shoreline Drive easement;
thence North 39,155•00" west 11.80 feet along the
shoreline Drive easement;
thence North 28A55'00" East 10.60 feet along the
thence North 83A25'00" East 41. 60 feet;
thence North 87"43'00" East 42.20 feet;
thence North 78A02'00" East 121. 09 feet;
thence North 81A07'00" East 31.80 feet;
thence North 7lA02'00" East 29.80 feet;
thence south 05A20'00" East 7.30 feet along the westerly bank of
Ryerson creek;
thence south 25Al7' 00" west 47.50 feet along the Westerly bank of
Ryerson creek;
bank of
thence south 22A41' 56" west 33.15 feet along the westerly
Ryerson Creek to the POINT OF BEGINNING.
Note: all distances are grid distances.
grid distance divided by 0.99992 ~ ground distance.
Easement#2
conserva·tion Easement - East of Ryei·son creek
An easement for conservation purposes located in Block 553 of
t~e Revised Plat of 1903 of the city of Muskegon (recorded in
L1ber 3 of Plats, Page 71), city of Muskegon, Muskegon county,
state of Michigan, described as follows:
commencing at the most southerly corner of Block 556;
thence North 58A27'32" East 417.80 feet along the Northwesterly line of
western Avenue;
thence North 58A23' 09" East 698 .10 feet a 1ong the Northwesterly line of
western Avenue;
thence North 04A17'03" East 79.03 feet to point "A" of the shoreline
01·i ve easement;
said point "A" also being located as follows:
commence at the southwest comer of section 30, Town 10 North, Range 16 \'/est;
thence south 88A05'48" East 827.55 feet alonq the south line of said section;
thence North 02Al7'47" East 2509.76 feet along the construction centerline
of u.s. 31-BR (Seaway Drive);
thence North 40A30' 01" East 6393. 80 feet to the point ca 11 ed "A";
thence North 18A25'25'' East 82.71 feet to the POINT OF BEGINNING of the
conservation easement;
along the Easterly bank of
thence North 17A02'34" East 25.14 feet
Ryerson creek;
thence North 62A47'00" East 72.39 feet;
thence south 87A07'Q0" East 8.70 feet;
thence south 15A57'00" East 3.30 feet;
thence south 49A32'00" West 15.00 feet;
thence south 15f.41'00" west 21.80 feet;
thence North 81A31'00" west 16.40 feet;
thence South 47A55'QQ" west 23.00 feet;
thence south 84A39'00" East 24.00 feet;
thence south 05A50'00" East 19.20 feet;
thence south 85A54'00" west 23.60 feet;
thence North 68Al4'00" west 35.60 feet to the POINT OF BEGINNING.
Note: a 11 di stances are grid di stances. ( ....,_
grid di stance divided by O. 99992 = ground di stance. 0 • 05 'a A J
1111111111111111 111111
Mar·k Fairchild, Muskegon Co ROD 034
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Exhibit D (Access)
The easement can be accessed through Shoreline Dr. which is a public road that is adjacent to the easement.
MDEQ staff can use said road to gain access to this easement.
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03/30/2009 11 :50A
Pase: 10 of 10
6
Commission Meeting Date: May 13, 2008
Date: May 1, 2008
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Public Hearing for Amendments to Brownfield
Plan - Betten Auto Dealerships Project
SUMMARY OF REQUEST: To hold a public hearing and approve the attached
resolution approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of the Bellen Auto Dealerships project in the
Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax Increment Financing would be used to
reimburse the developer and the City for Act 381 "eligible expenses" incurred in
association with development of the Bellen properties, starting in 2008. The
developers/owners estimate that full development of the Bellen properties will involve
over $13 million in private investment (in addition to property acquisition), resulting in
a substantial increase in the city income, and local and school property taxes
generated by the property.
"Eligible expenses" of over $3 million would be reimbursed The estimated tax
capture schedule is included as Attachment S-3 in the proposed Brownfield Plan
Amendment. The City is also authorized by law to capture up to $75,000/year to pay
for "reasonable and actual administrative and operating costs" of the Brownfield
Redevelopment Authority. As such, $10,000/year of the local tax increment will be
captured to reimburse the Brownfield Authority for its administrative costs, for the
duration of the Brownfield Plan.
After all eligible costs incurred by the parties are reimbursed, the BRA is authorized
to continue to capture local taxes for five more years for deposit into a Local Site
Remediation Revolving Fund. Current · tax capture estimates indicate that
approximately $1,048,000 could be captured from the taxes on the Bellen properties
for deposit into this local fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the attached
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for May 13, 2008 at their April 22, 2008 meeting. Since that time, a notice of
the public hearing has been sent to the taxing jurisdictions, MDEQ, and MEGA of the
proposed amendment and its financial impact on each jurisdiction, and has been
published twice in the Muskegon Chronicle. In addition, the Brownfield
Redevelopment Authority approved the Plan amendment on April 1, 2008 and
recommended that the Muskegon City Commission approve the Plan amendment.
The BRA will review the Plan revisions at their May 13, 2008 meeting and will make
an additional recommendation to the Commission regarding the revised Plan.
2008-43{a)
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
BETTEN AUTO DEALERSHIPS PROJECT
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of Muskegon,
County of Muskegon, Michigan (the "City"), held in the City Commission Chambers,
on the 13th of May, 2008, at 5:30 o'clock p.m., prevailing Eastern Time.
PRESENT: Members
Gawron, Shepherd, Spataro, Warmington, Wierenga, and
Carter
ABSENT: Members
Wisneski
The following preamble and resolution were offered by Member
carter and supported by Member Shepherd
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the "Authority") has prepared and approved a Brownfield
Plan Amendment to include the Betten Auto Dealerships Project (Betten Brownfield
Plan Amendment); and
WHEREAS, the Authority has foiwarded the Bellen Brownfield Plan
Amendment to the City Commission requesting its approval of the Bellen
Brownfield Plan Amendment; and
WHEREAS, the City Commission has provided notice and a reasonable
opportunity to the public, the taxing jurisdictions levying taxes subject to capture,
the Michigan Department of Environmental Quality, and the Michigan Economic
Growth Authority to express their views and recommendations regarding the Bellen
Brownfield Plan Amendment, as required by Act 381; and
WHEREAS, not less than 10 days has passed since the City Commission
provided notice of the proposed Bellen Brownfield Plan to the taxing units; and
WHEREAS, a notice of the Public Hearing on the proposed Bellen
Brownfield Plan Amendment was published twice in the Muskegon Chronicle, the
first of which was not less than 1O days before the scheduled Public Hearing; and
WHEREAS, the City Commission held a public hearing on the proposed
Bellen Brownfield Plan on May 13, 2008.
NOW, THEREFORE, BE IT RESOLVED, THAT:
1. Definitions. Where used in this Resolution the terms set forth below shall
have the following meaning unless the context clearly requires otheiwise:
"Brownfield Plan" means the Brownfield Plan and its Amendments prepared
by the Authority, as transmitted to the City Clerk by the Authority for
approval, copies of which Brownfield Plan and Amendments are on file in
the office of the City Clerk.
"Eligible Activities" means those activities as defined by Act 381.
"Eligible Property" means the property designated in the Brownfield Plan as
the Eligible Property, as described in Act 381.
"Taxing Jurisdiction" shall mean each unit of government levying an ad
valorem property tax on the Eligible Property.
2. Public Purpose. The City Commission hereby determines that the
Brownfield Plan Amendment for the Betten Auto Dealership Project
constitutes a public purpose.
3. Best Interest of the Public. The City Commission hereby determines that it
is in the best interests of the public to promote the revitalization of eligible
properties in the City to proceed with the Betten Brownfield Plan
Amendment.
4. Review Considerations. As required by Act 381, the City Commission has,
in reviewing the Betten Brownfield Plan Amendment, taken into
consideration whether the Brownfield Plan Amendment meets the
requirements set forth in Section 13 of Act 381.
5. Capture of Tax Increment Revenues by Authority. The Authority intends to
capture Tax Increment Revenues on the Eligible Property, as described in
the Brownfield Plan Amendment. The amount of captured taxable value
estimated to result from adoption of the Brownfield Plan Amendment is
reasonable, given the current information available. The financing of eligible
activities as described by the Brownfield Plan appears to be feasible, and
the Authority has the ability to arrange such financing.
6. Costs of Eligible Activities. The costs of eligible activities as described in the
Brownfield Plan Amendment are reasonable and necessary to carry out the
purposes of Act 381.
7. Approval and Adoption of Brownfield Plan Amendment. The Bellen
Brownfield Plan Amendment as submitted by the Authority is hereby
approved and adopted. A copy of the Brownfield Plan and all amendments
thereto shall be maintained on file in the City Clerk's office.
8. Disclaimer. By adoption of this resolution and approval of the Brownfield
• Plan Amendment, the City assumes no obligation or liability to the owner,
developer or lessor of the Eligible Property for any loss or damage that may
result to such persons from the adoption of this resolution and Brownfield
Plan Amendment. The City makes no guarantees or representations as to
the determinations of the appropriate state officials regarding the ability of
the owner, developer or lessor to qualify for a Michigan Business Tax credit
pursuant to, Michigan Public Act 36 of 2007, as amended, or as to the ability
of the Authority to capture tax increment revenues from the State and local
school district taxes for the Brownfield Plan.
8. Repealer. All resolutions and parts of resolutions insofar as they conflict
with the provisions of this resolution be and the same hereby are rescinded.
AYES: Members
Spataro, Warmington, Wierenga, Carter, Gawron, and
Shepherd
NAYS:
Members None
RESOLUTION DECLARED ADOPTED.
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Ann Marie Becker, City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon,
State of Michigan, at a regular meeting held May 13, 2008, and that said meeting
was conducted and public notice of said meeting was given pursuant to and in full
compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan,
1976, as amended, and that the minutes of said meeting were kept and will be or
have been made available as required by said Act.
\· . . . )\_ ·(2- . ,/
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Ann Marie Becker, City Clerk
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT
AUTHORITY
BROWNFIELD PLAN AMENDMENT
BETTEN AUTO DEALERSHIPS
May, 2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT
AUTHORITY
BROWNFIELD PLAN AMENDMENT
BETTEN AUTO DEALERSHIPS
Original Plan Approved by the Board of the City of Muskegon Brownfield Redevelopment
Authority on February 23, 1998, with amendments approved 8/10/98; 6/13/00; 4/15/03;
717103; 4/20104; 6/21/04; 9/8/04; 9/5/06; 2/23/07; 5/15/07, and 11/12/07.
Original Plan Approved by the City Commission of the City of Muskegon on
April 14, 1998, with amendments approved 8/11/98; 7/11/00; 5/27/03; 8/12/03; 5/25/04;
7/13/04; 7/27/04; 10/12/04; 10/24/06; 3/27/07; 6/12/07, and 1/8/08.
ii 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
INDEX
Page
I. INTRODUCTION 1
11. GENERAL PROVISIONS 1
A. Costs of the Brownfield Plan 1
B. Maximum Amount of Indebtedness 2
C. Duration of the Brownfield Plan 2
D. Displacement/Relocation of Individuals on
Eligible Properties 2
E. Local Site Remediation Revolving Fund 2
Ill. SITE SPECIFIC PROVISIONS 4
A. Kirksey/Anaconda Property (Approved 4/14/98)
B. Dilesco Corporation Property (Approved 8111/98)
C. Beacon Recycling (Approved 7/11/00)
D. Verplank Dock Company (Approved 5/27/03)
E. Gillespie Development Property (Approved 8/12/03))
F. Loft Properties, LLC Property (Approved 8/12/03)
G. Parmenter O'T oole Property (Approved 8/12/03)
H. "The WaterMark" Project (Approved 5/25/04)
I. Northern Machine Tool (Approved July 13, 2004)
J. Terrace Lots Office Building (Approved July 13, 2004)
K. Art Works Apartments (Approved July 27, 2004)
L Former Muskegon Mall (Approved October 12, 2004)
M. Vida Nova at Edison Landing (Approved 10/10/06)
N. Western Ave. Properties LLC and Port City Development Services, LLC
(Approved 10/10/06)
0. Viridian Place at Edison Landing (Approved 10/24106)
P. Hot Rod Harley (Approved March 27, 07)
Q. Sidock Building Project (Approved June 12, 07)
R. Heritage Square Town Homes (Approved 1/8/08)
S. Betten Auto Dealerships (Proposed for approval 4122108)
1. Eligibility and Project Summary 4
2. Eligible Activities 8
3. Eligible Investment 11
4. Project Financing 12
5. Local Site Remediation Revolving Fun 13
iii 4130/2008
City of Muskegon Brownfield Plan Amendment
Betten Auto Dealerships
I. INTRODUCTION
In order to promote the revitalization of commercial, industrial, and residential properties
within the boundaries of the City of Muskegon (the "City"), the City established the City
of Muskegon Brownfield Redevelopment Authority (the "Authority") pursuant to the
Brownfield Redevelopment Financing Act, P.A. 381 of 1996, as amended ("Act 381 "),
and a resolution adopted by the Muskegon City Commission on February 10, 1998.
The major purpose of this Brownfield Plan ("Plan") is to promote the redevelopment of
eligible properties within the City that are impacted by the presence of hazardous
substances in concentrations that exceed Michigan's Part 201 Generic Cleanup Criteria
("facilities') or that have been determined to be Functionally Obsolete or Blighted.
Inclusion of property within this Plan can facilitate financing of environmental response
activities, infrastructure improvements, demolition, lead or asbestos abatement, and site
preparation activities at eligible properties; and may also provide tax incentives to
eligible taxpayers willing to invest in revitalization of eligible properties. By facilitating
redevelopment of underutilized eligible properties, the Plan is intended to promote
economic growth for the benefit of the residents of the City and all taxing units located
within and benefited by the Authority.
This plan is intended to be a living document, which can be amended as necessary to
achieve the purposes of Act 381. It is specifically anticipated that properties will be
continually added to the Plan as new projects are identified. The Plan contains general
provisions applicable to each site included in the Plan, as well as property-specific
information for each project. The applicable Sections of Act 381 are noted throughout
the Plan for reference purposes.
This Brownfield Plan contains the information required by Section 13(1) of Act 381, as
amended. Additional information is available from the Muskegon City Manager or the
Director of Planning and Economic Development.
II. GENERAL PROVISIONS
A Costs of the Brownfield Plan (Section 13(1)(a))
Any site-specific costs of implementing this Plan are described in the site-specific
section of the Plan. Site-specific sources of funding may include tax increment financing
revenue generated from new development on eligible brownfield properties, state and
federal grant or loan funds, and/or private parties. Where private parties finance the
costs of eligible activities under the Plan, tax increment revenues may be used to
reimburse the private parties. The initial costs related to preparation of the Brownfield
Plan were funded by the City's general fund. Subsequent amendments to the Plan may
be funded by the person requesting inclusion of a project in the Plan, and if eligible, may
be reimbursed through tax increment financing.
The Authority intends to pay for administrative costs and all of the things necessary or
convenient to achieve the objectives and purposes of the Authority with fees charged
applicants to be included in the Plan, and any eligible tax increment revenues collected
4130/2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
pursuant to the Plan, in accordance with the provisions of Act 381, including, but not
limited to:
i) the cost of financial tracking and auditing the funds of the Authority,
ii) costs for amending and/or updating this Plan, and
iii) costs for Plan implementation
Tax increment revenues that may be generated and captured by this plan are identified
in the site-specific sections of this Plan.
B. Method for Financing Costs of Plan (Section 13(1)(d) and (e)))
The City or Brownfield Authority may incur some debt on a site-specific basis. Please
refer to the site-specific section of this Plan for details on any debt to be incurred by the
City or Authority. When a property proposed for inclusion in the Plan is in an area where
tax increment financing is a viable option, the Authority intends to enter into
Development Agreements with the property owners/developers of properties included in
the Plan to reimburse them for the costs of eligible activities undertaken pursuant to this
Plan. Financing arrangements will be specified in a Development and Reimbursement
Agreement, and also identified in the Site Specific section of the Plan.
C. Duration of the Brownfield Plan (Section 13(1 ){f))
The Plan, as it applies to a specific eligible property, shall be effective up to five (5)
years after the year in which the total amount of any tax increment revenue captured is
equal to the total costs of eligible activities attributable to the specific eligible property, or
up to thirty (30) years from the date of initial brownfield tax capture as it relates to an
individual site, whichever is less. The total costs of eligible activities include the cost of
principal and interest on any note or obligation issued by the Authority to pay for the
costs of eligible activities, the cost of principal and interest otherwise incurred to pay for
eligible activities, the reasonable costs of a work plan or remedial action plan, the costs
of preparation of Brownfield Plans and amendments; the actual costs of the Michigan
Department of Environmental Quality's or Michigan Economic Growth Authority's review
of work plans, and implementation of the eligible activities.
D. Displacement/Relocation of Individuals on Eligible Properties
(Section 13(1J(i),U)(k)(I)
At this time, eligible properties identified in this Plan do not contain existing residences,
Therefore the provisions of Section 13(1)(i-l) are not applicable at this time.
E. Local Site Remediation Revolving Fund (Section B: Section 13(1)(m))
Whenever this Plan includes a property for which taxes will be captured through the tax
increment financing authority provided by Act 381, it is the Authority's intent to establish
a Local Site Remediation Revolving Fund ("Fund"). The Fund will consist of tax
increment revenues that exceed the costs of eligible activities incurred on an eligible
property. as specified in Section 13(5) of Act 381. Section 13(5) authorizes the capture
of tax increment revenue from an eligible property for up to 5 years after the time that
capture is required for the purposes of paying the costs of eligible activities identified in
2 4/30/2008
City of Muskegon Brownfield Plan Amendment
Be/ten Auto Dealerships
the Plan. It is the intention of the Authority to continue to capture tax increment
revenues for 5 years after eligible activities are funded from those properties identified
for tax capture in the Plan, provided that the time frame allowed by Act 381 for tax
capture is sufficient to accommodate capture to capitalize a Fund. The amount of school
operating taxes captured for the Revolving Fund will be limited to the amount of school
operating taxes captured for eligible environmental response activities under this Plan. It
may also include funds appropriated or otherwise made available from public or private
sources.
The Revolving Fund may be used to reimburse the Authority, the City, and private
parties for the costs of eligible activities at eligible properties and other costs as
permitted by Act 381. It may also be used for eligible activities on an eligible property for
which there is no ability to capture tax increment revenues. The establishment of this
Revolving Fund will provide additional flexibility to the Authority in facilitating
redevelopment of brownfield properties by providing another source of financing for
necessary eligible activities.
3 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
Ill. SITE SPECIFIC PROVISIONS
s. Betten Auto Dealerships
1. Eligibility and Project Description/Sec. 13/1)/h))
Project Description
The eligible property included in this plan is located at 2410, 2474, 2477, and 2501
South Henry Street, Muskegon, Michigan. The legal descriptions of the properties are
included in Attachment S-1. This eligible property includes all real and personal
property.
The Proposed Project would include redevelopment on both sides (east and west) of
South Henry Street in the City of Muskegon. The parcels with even-numbered
addresses are on the east side of the street, and the parcels with odd-numbered
addresses are on the west side of the street. A site map and preliminary proposed site
plan is attached as Attachment S-2. If the Proposed Project is not constructed at this
site, the entire Betten family of full service automobile dealership businesses will be
relocated to a 23 acre greenfield site located along Ellis Road in the City of Norton
Shores, which is already owned by the Bellen family.
The part of the Proposed Project on the east side of South Henry Street would include
new automobile dealership facilities for four (4) General Motors automobile lines and a
new automobile body shop and repair facility, and would be located on two contiguous
parcels located at 2410 South Henry Street (formerly the location of the Doo Drop Inn)
and 2474 South Henry Street (the current location of the existing Bellen Chevrolet and
Cadillac dealerships). This part of the Proposed Project will sometimes herein be
referred to as the "East Project".
The portion of the Proposed Project which is on the west side of South Henry Street
would include two separate new automobile dealership facilities and a used car
dealership facility, and would be located on two contiguous parcels located at 2477
South Henry Street (currently the Robinson Body Shop) and 2501 South Henry Street
(formerly the Tom Miller Pontiac-GMC-Honda automobile dealership and currently home
to the Bellen Honda-Pontiac-GMC automobile dealership). These parcels are directly
across South Henry Street from the East Project. This part of the Proposed Project will
sometimes be referred to herein as the "West Project", and the three new facilities to be
constructed in the West Project will sometimes be individually referred to herein as the
"Honda Project", the "Hyundai Project" and the "Used Car Project".
The East Project would include substantial expansion and rehabilitation of the existing
functionally obsolete, outdated and undersized automobile dealership facilities at 2474
South Henry Street, to create a larger, more modern, efficient and visually appealing full
service automobile dealership facility encompassing both the 2410 South Henry Street
and 2474 South Henry Street parcels, as well as a new automobile body shop and repair
facility which would be located on the back (east side) of the dealership facility. This
automobile dealership facility would be home to the Betten automobile dealership
4 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
operations for Chevrolet, Cadillac, Pontiac and GMC. This part of the Proposed Project
is driven by practical needs and legal requirements relating to the recent addition of the
Pontiac and GMC businesses to the Betten family of dealerships, and by the
requirements of the four automobile manufacturers to enlarge and improve the
dealership facilities. The existing automobile dealership structure is approximately
30,000 square feet, and the East Project would reuse, rehabilitate, and expand the
existing building to the north and east to a total size of approximately 70,000 square feet.
The new body shop located on the back (east side) of the dealership facility would serve
all of the Betten dealerships, and would incorporate state-of-the-art systems and
equipment, which would provide environmental protections superior to those provided by
existing older operations.
The West Project would include demolition of the former Tom Miller auto dealership
facility and the Robinson Body Shop, to be replaced by construction of three new
facilities. The Honda Project and the Hyundai Project would replace the existing
functionally obsolete automobile dealership building, which is undersized, suffering
deterioration, and inefficient in its layout.
The construction of these new dealership facilities is also driven by requirements of the
automobile manufacturers to separate and improve Betten's dealership facilities as a
condition of acquisition (as to recent acquisitions of Pontiac, GMC and Honda), a
condition of obtaining (as to Hyundai) the dealership business, and a condition of the
continuing relationship with General Motors.
The Used Car Project would be a new facility which would replace the existing "trailer"
(i.e., manufactured-housing-type building) which currently serves as the inadequate and
relatively unappealing home to the used car sales operation on the west side of South
Henry Street.
Both the East Project and the West Project would be designed to be more visually
appealing than the current buildings, and would include landscaping and other site
improvements to improve layout, traffic flow, and storm water management, among other
things. Both the East Project and West Project also would include reconstruction and
improvement of parking lot facilities, which would improve vehicle display and customer
traffic efficiency.
Estimate of Capital Investment
The Proposed Project would result in substantial new and increased capital investment
ad valorem tax base in the City of Muskegon, as well as increased City income taxes.
Investment in demolition; infrastructure improvements; site preparation and site
improvements; building construction, restoration, rehabilitation, renovation and
improvement; and new or additional machinery, equipment and fixtures is currently
estimated at $10,808,500 Those costs are broken down in Sections 2 and 3 of this Plan.
In addition, Betten has or will incur substantial costs of several million dollars for land
acquisition (parcels referred to as 241 O and 2501 South Henry Street have already been
acquired; acquisition of the parcel referred to as 2477 South Henry Street has not yet
been completed and acquisition of the 2474 South Henry Street parcel is currently under
5 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bet/en Auto Dealerships
lease but must be acquired outright by the applicant in the future); as well as additional
legal and consulting costs. By locating the Proposed Project at this site, the applicant
would also incur substantial costs as a result of interference with its continuing business
operations while site work, construction, etc., is underway.
Job Retention and Creation
The Proposed Project would result in substantial job retention and job creation, with all
the benefits that follow from those jobs including substantial increased City income
taxes. The existing Betten businesses in Muskegon currently employ approximately 125
employees among all of the locations affected. The Proposed Project would result in
retention of these jobs in the City of Muskegon. The Proposed Project likely would also
result in retention of several jobs associated with the Robinson Body Shop at the 2477
South Henry Street parcel. In addition, we estimate that there would be an additional 30
to 40 new jobs created in the City of Muskegon at the various Betten entities as part of
the Proposed Project, including automobile technicians, office staff, and sales personnel.
Furthermore, the firm which would design and construct the Proposed Project has
indicated that approximately 100 jobs would be created or retained with regard to its
design, construction and related activities to complete the Proposed Project. The jobs
which would be created or retained for the construction of the Proposed Project are not
limited to employees of the general contractor that may (in part) be brought to the City of
Muskegon from elsewhere; local tradesmen would be expected to benefit as well.
Sustainable Development Principles
In many ways, the Proposed Project is not only consistent with sustainable development
principles, it goes right to the core of those principles. The very heart of the Proposed
Project is that it would result in redevelopment/reuse of four parcels historically used for
commercial activities in a neighborhood that has long been extensively developed for
commercial and industrial use and which is served by existing roads, utilities and other
public infrastructure. Two of the parcels to be reused are impacted by environmental
contamination (i.e., the parcels at 2410 and 2501 South Henry Street) and another is
currently an automobile body shop for the environmental due is underway (i.e., 2477
South Henry Street). Furthermore, the East Project is based on redevelopment and
reuse of the existing large dealership building structure at 2474 South Henry Street.
Additional specific elements and benefits of the Proposed Project are also consistent
with or based on sustainable development principles. For example, the buildings which
are part of the Proposed Project will harmonize with and improve the appearance of the
neighborhood. As a further example, the Proposed Project is anticipated to include
modernized energy efficient and resource efficient buildings and fixtures, which are also
anticipated to be more healthy and user friendly than the existing buildings. The
Proposed Project would also incorporate well designed storm water management
facilities and practices, which likely will include low impact bio-retention concepts. The
Proposed Project would be anticipated to improve traffic flow, offer parking for alternative
fuel vehicles, and encourage employees to ride bicycles to work by including a bicycle
rack and shower facilities for the bicyclists to shower upon arrival. The Proposed Project
would also include substantially enhanced landscaping, which is anticipated to include
plants native to and compatible with the local and regional ecosystem.
6 4/30/2008
City of Muskegon Brownfield Plan Amendment
Be/fen Auto Dealerships
As further evidence of the implementation of sustainable development principles, we
anticipate that "LEED" certification would be sought through the U.S. Green Building
Council for the Proposed Project. However, as noted above, the new and rehabilitated
dealership facilities contemplated in the Proposed Project are subject to requirements
set by the automobile manufacturers for which the applicant is a dealer; these
requirements and specifications are beyond the control of the applicant, and may limit
the potential for maximizing such certification.
Public Benefits
The public benefits that would result from completion of this Proposed Project include:
• A very substantial multi-million-dollar investment (estimated to exceed
$13,000,000 including land acquisition costs) and substantially increased tax
base in the City of Muskegon as described in more detail elsewhere in this
application;
• The substantial job retention and creation described above, including the
resulting continued and increased City income taxes;
• The overall improved appearance of the facilities and site;
• Renovation and construction of new buildings in a traditional commercial corridor
of the City;
• The improved traffic flow, continued and increased utilization of local public
utilities, storm water management, protection from pre-existing potential
environmental hazards;
• Other benefits inherent to implementation of sustainable development principles
and consistent with "smart growth" tenets.
Site Plan Information
As indicated above, a site map and preliminary proposed site plan is attached as
Attachment S-2. To summarize the information in that site depiction, the Proposed
Project includes approximately 19.8 acres of land in total. The East Project is located on
approximately nine acres of land. When complete, the East Project full service
automobile dealership facility would be approximately 70,000 square feet, which is an
expansion that would more than double the 30,000 square feet of the existing building.
The West Project is located on approximately 1O acres of land, and would replace the
outdated automobile dealership facility at 2501 South Henry Street (approximately
30,000 square feet) and the existing manufactured-housing-type used car facility
(approximately 1,500 square feet) with the new 28,000 square foot Honda facility, the
new 16,000 square foot Hyundai facility and the new 6,500 square foot newly-
constructed used car facility.
"Facility" Status
Environmental due diligence performed with regard to the 241 O South Henry Street site
in conjunction with the 2007 acquisition of that site revealed that the 2410 South Henry
Street parcel is a Part 201 "facility" due to environmental contamination. Based on
information available, the environmental impacts at the 241 O South Henry Street site
7 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
were not caused by the applicant or its family of businesses; the contamination was
apparently the result of the long-past practice of using impacted foundry waste as fill
material, as well as a plume of impacted groundwater migrating onto the site, apparently
from a neighboring plating company. A Baseline Environmental Assessment (BEA) was
prepared in August 2007 and submitted to the Michigan Department of Environmental
Quality for the 2410 South Henry Street parcel. The BEA and a Part 201 Due Care Plan
were funded by the City's MDEQ Site Assessment Grant. ·
Environmental due diligence performed in conjunction with the 2007 acquisition of the
2501 South Henry Street parcel revealed that this parcel is a "facility" due to
environmental contamination; based on the available information, the environmental
contamination of this parcel was not caused by the applicant or its family of businesses,
but was apparently caused by the long-past practice of disposing of impacted foundry fill
in the area (this parcel was apparently owned long ago by the Campbell, Wyant &
Cannon Company, a local foundry) and by historical underground storage tanks (which
were removed in 1989 and properly "closed" in accordance with law). A Baseline
Environmental Assessment was prepared February, 2007 and submitted to the Michigan
Department of Environmental Quality with regard go the 2501 South Henry Street parcel.
The BEA and a Part 201 Due Care Plan were funded by the City's MDEQ Site
Assessment Grant.
Project Timetable
The Proposed Project timetable is generally based on and measured from a starting
date which is assumed to be the date when the applicant makes a final decision to
proceed with the Proposed Project. In turn, this is contingent (in significant part) on the
completion and timing of final approval of the tax benefits and tax increment financing
enabled by this Brownfield Plan. However, it is also important to note that the Proposed
Project is contemplated in order to meet requirements of various automobile
manufacturers for which the applicant is or will become a dealer. These manufacturers
have demanded construction of new, improved, modernized and enlarged facilities, and
to meet the time limits they have demanded of the applicant, this Proposed Project must
proceed as soon as possible. Therefore, because of the time required to proceed
through the Brownfield process, the most pressing item on the applicant's timetable is to
obtain all necessary approvals for the Brownfield financial incentives, in order to make
the Proposed Project financially viable at the existing site.
This tight timeline due to the requisite commitments by the applicant to various
automobile manufacturers also imposes an additional difficulty in undertaking the
Proposed Project at this location. The timeline for the Proposed Project at this site
would be extended due to the need to plan around and/or relocate existing utilities and
infrastructure, and work around the operation of the existing automobile dealership
businesses on the same site during site work and construction.
Completion of the Proposed Project is targeted for December 31, 2008, which will
require commencement of the Proposed Project as soon as possible. If this application
process becomes overly protracted, the Proposed Project may have to be abandoned in
favor of the alternative greenfield site where new full service automobile dealership
facilities can be constructed more expeditiously (as well as at less cost).
8 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
The East Project and West Project, including all of the separate facilities to be
constructed (East Project General Motors automobile dealership facilities and body
shop, Honda Project, Hyundai Project and Used Car Project) would be constructed on
an overlapping and concurrent basis, to the maximum extent possible consistent with the
requirements of the ongoing Betten businesses currently at this site, as well as the
practical limitations of the site and the contractor's resources.
2. Eligible Activities (Sec. 13(1l(al(b)l
Some eligible activities have already been conducted on the Proposed Project property
and included preparation of a Baseline Environmental Assessment and Section 7a (Due
Care) Compliance Analysis for the 2501 Henry St. property and also the 2410 Henry
Street Property. As noted previously, these environmental response activities were paid
for through the City's MDEQ Brownfield Site Assessment Grant. However, several
additional eligible activities have been identified that are necessary to implement the
Proposed Project. They are summarized in the table below.
:::c ,.. .... 'Yi •.;\ .·. / start/Epd••.9~tej ':\
';, '
,OE}EligibleActivities·(fo(taxjncr.ernent_;(
. -:-{\ -:-~,_/:- >·: ·"-" <: .-.-.:.:._'.,
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••y\.i. (all d~tes ei;tirriatecl))·••
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Phase I & II Environmental Site $33,000 Immediate/Day 45
Assessment, Baseline Environmental
Assessment and Due Care Plan (2477
South Henry Street)
Due Care Response Activities and Concurrent with other
Additional Response Activities: 2410, site preparation and
2474, 2501, 2477 South Henry Street site improvement
activities
• Due Care Plan update and $50,000
documentation; Due Care
oversight during construction
• Impacted soils/fill excavation, $866,415
characterization, disposal, and
clean backfill (as necessary)
Due Care Response Activities and $50,000 If such activities are
Additional Response Activities: 2477 necessary or
South Henry Street: appropriate at this
Impacted Soil excavation and disposal is parcel, it is anticipated
included in the above category; however, they will occur
until the Phase I & II ESA is completed, concurrently with other
this budget includes an allocation for Due site preparation and
Care Response activities that may be improvement activities
identified during the environmental due
diligence.
9 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bet/en Auto Dealerships
Eligible Activities (fortaX incremE'![1t c · Estimated
:·'
Costi, • , ,.start/End Date*,
,'
,,.," -~·:·--_ ''. :
I.
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.,---,. \:>i'' '/ (all dates 'estirrjafed) · •·
. fir]i;lhcing) '.%{.\f_: }'.i :-·-,:·>-"
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Preparation of Brownfield Plan, and Work $50,000 Immediate/Day 30
Plans for Due Care Activities and
Additional Response Activities
Demolition
- East Project $60,000 Immediate/Day 30
- West Project $100,000 Day 30 - Day 60
Asbestos/Lead Paint Survey
- East Project $3,000 Immediate/Day 10
- West Project $6,000
Lead Abatement
- 2410, 2474 and 2501 South Henry N/A N/A
Street
- 24 77 South Henry Street It is not yet known If necessary, they will
whether any such occur concurrently with
activities will be other site preparation
necessary or and improvement
appropriate for the activities
2477 South Henry
Street oarcel
Asbestos Abatement
- East Project $30,000 total N/A
- West Project: preliminary N/A
2501 South Henry Street estimate for all If such activities are
2477 South Henry Street buildings; it is not necessary or
known whether appropriate at this
any such activities parcel, it is anticipated
will be necessary they will occur
or appropriate concurrently with other
until surveys are site preparation and
performed improvement activities
Public Infrastructure Improvements Concurrent with other
(Infrastructure improvements that directly site preparation and
benefit the project, such as public streets, site improvement
sidewalks, parking facilities, sewer and activities
water)
East Proiect: Sewer relocation $200,000
West Proiect: Sewer televising, cleaning, $150,000
spot repairs
Total Qroiect: $300,000 Spring 2009
Mill and resurface Henry St between (After improvements)
Sherman & Hackley
10 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bet/en Auto Dealerships
Site Preparation (Activities necessary to
prepare site for construction including
relocation of utilities, addition/removal of
soils, clearing and grubbing, land
balancing/grading; foundation to address
special soil concerns)
- East Project $550,000
- West Project $465,000 Immediate/Day 150
Immediate/Day 150
Preparation of Work Plans for Public $50,000 Immediate/Day 30
Infrastructure Improvements and Site
Preparation Activities; engineering,
design, legal and professional costs and
fees
Costs to review 381 Work Plans:
MDEQ $2,500
MEDC/MSHDA $10,000
Contingencies 24,085
TOTAL ELIGIBLE ACTIVITY COSTS $3,000,000.
* All starting dates are based on a timeline commencing with a final decision of the
applicant to proceed, which is contingent (in significant part) on approval of this
Brownfield Plan and final approval of the tax incentives sought pursuant to it.
3. Eligible Investments, Tax Increment Revenue Estimates (Sec. 13I1llcllfll
The Bellen Automobile Dealerships project is included in this Plan to enable qualified
taxpayers, as defined by Section 437(31)(m) of Michigan Public Act 36 of 2007, an
amendment to the Michigan Business Tax Act, to avail themselves of eligibility for a
credit against their Michigan Business Tax liability for eligible investments as defined by
P.A. 36 of 2007. Eligible investment includes demolition, construction, restoration,
alteration, renovation, or improvement of buildings or site improvements on eligible
property and the addition of machinery, equipment, and fixtures to eligible property after
the effective date of this Plan, and after the date the State pre-approval letter is issued,
if the costs of the eligible investment are not otherwise reimbursed to the qualified
taxpayer or paid for on behalf of the taxpayer from any source other than the taxpayer.
Michigan Business Tax credits of up to 20% of the eligible investment are available to
certain qualified taxpayers on certain projects. The Bellen Auto Dealerships project
appears to meet the criteria for eligibility of up to 20% Michigan Business tax Credit,
pursuant to new pending new amendments to the Michigan Business Tax Act, 2007 P.A.
36. The following summarizes the eligible investment for the Proposed Project:
11 4/3012008
City of Muskegon Brownfield Plan Amendment
Bet/en Auto Dealerships
Eligibl~ Investments (For,IVIBI,Crecfit) ----•------ _Estimated Costs )-• -__ -_--.- Start/End Date•---.
- '-•··< >·--"·'" ; ;' -.- :-;: ;:. -•- -__ :\·:> ; -, - •.- •. >- •'" _·,i-.• •.. •---· ; ,- <-_ '.
Site Improvements (Clearing land; adding
sewer, water lines, or other utilities;
landscaping; soil addition/removal;
fencing; lighting; walkways, driveways, or
parking lots; related site improvements)
- East Project $175,000 Immediate/Day
150
- West Project
- Honda Project $60,000 Immediate/Day
- Hyundai Project $40,000 150
- Used Car Project $25,000 Immediate/Day
150
Immediate/Day
150
Construction, Restoration, Alteration,
Renovation, or improvements of Buildings
- East Project $3,800,000 ASAP /December
31, 2008
- Honda Project $2,519,000 ASAP/December
31, 2008
- Hyundai Project $1,693,000 ASAP/December
31,2008
- Used Car Project $400,000 ASAP/December
31,2008
Addition of Machinery, Equipment and
Fixtures
- East Project $300,000 To be completed
by December 31,
2008
- West Project $200,000 To be completed
by December 31,
2008
TOTAL ELIGIBLE INVESTMENTS $9,212,000
* All starting dates are based on a timeline commencing with a final decision of the
applicant to proceed, which is contingent (in significant part) on approval of this
Brownfield Plan and final approval of the tax incentives sought pursuant to it
Based on these eligible investments, an estimate of the captured taxable value and tax
increment revenues from the Proposed Project property have been estimated. The tax
increment revenue estimates are included in Attachment S-3. These estimates include
both local taxes and school operating taxes. .
12 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bet/en Auto Dealerships
4. Project Financing (Sec.13(1l(dl(e))
The primary source of financing for the eligible activities identified in this Plan will be
private financing arranged by the developer. The City and the Developer have also
negotiated a Brownfield Reimbursement Agreement that will provide for reimbursement
of Betten's eligible costs, including interest, as provided for by law and the terms of the
Reimbursement Agreement, through the Brownfield tax increment generated by the
project. Eligible costs will be capped at $3 million; or until 2025, whichever occurs first.
Initial costs to prepare this Brownfield Plan and associated work plans were financed by
the City's Brownfield Plan application fee (paid by the applicant), city funds, and the
developers funds. These costs are eligible to be reimbursed through the Brownfield tax
capture. In addition, the City intends to capture $10,000 per year of the local tax
increment from this project to pay for the reasonable and actual administrative expenses
of the Authority, as provided by Act 381.
To capture school operating taxes for reimbursement the costs of eligible activities,
MDEQ must approve a work plan for the eligible environmental response activities, and
MEDC must approve a work plan for the Site Preparation and Public Infrastructure
activities.
In addition to the private financing by the developer, the City intends to utilize its MDEQ
Brownfield Loan to pay $250,000 of the environmental response activity costs
summarized above. The terms for repayment of this MDEQ Loan will be integrated into
the Development Agreement, and consistent with the Loan Contract between MDEQ
and the City.
5. Local Site Remediation Revolving Fund ( Sec. 13(1l(m)
Upon completion of reimbursement of all the eligible activity expenses as described
above, the Authority will continue to capture taxes from this project to finance a Local
Site Remediation Revolving Fund, as provided for by Act 381. Section 13(5) authorizes
the capture of tax increment revenue from an eligible property for up to 5 years after the
time that capture is required for the purposes of paying the costs of eligible activities
identified in the Plan. It is the intention of the Authority to continue to capture tax
increment revenues for 5 years after eligible activities are funded from those properties
identified for tax capture in the Plan. The amount of school operating taxes captured for
the Revolving Fund will be limited to the amount of school operating taxes captured for
reimbursement of eligible environmental response activities under this Plan. This
Project is estimated to generate $1,048,484 in tax increments for the Revolving Fund.
The Revolving Fund may be used to reimburse the Authority, the City, and private
parties for the costs of eligible activities at eligible properties and other costs as
permitted by Act 381. It may also be used for eligible activities on an eligible property for
which there is no ability to capture tax increment revenues. The establishment of this
Revolving Fund will provide additional flexibility to the Authority in facilitating
redevelopment of brownfield properties by providing another source of financing for
necessary eligible activities.
13 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
ATTACHMENT S-1
Legal Descriptions
Betten Auto Dealerships Brownfield Plan
MUSKEGON, MICHIGAN
4/30/2008
City of Muskegon Brownfield Plan Amendment
Betten Auto Dealerships
241 O South Henry Street Legal Description:
Located in the City of Muskegon. Muskegon County, Michigan, legally described
as follows:
Commencing on the North line, 33 feet East of the Northwest corner of the
Southwest fractional 1/4 of the Southwest fractional 1/4 of Section 31 , Town 10
North, Range 16 West; thence South, parallel to the West line of said Section, 303
feet: thence East, parallel with the North line, 456. 76 feet; thence North 303 feet;
thence West 456. 76 feet to the point of beginning.
2474 South Henry Street Legal Description
Real property in the City of Muskegon, County of Muskegon, State of Michigan, described
as follows:
PARCELi:
That part of the North 22 rods of the Southwest fractional quarter of the Southwest
fractional quarter of Section 31, Town 10 North, Range 16 West, described as
follows: Commence 33 feet East and 333 feet South of the Northwest corner of
said Southwest fractional quarter of Southwest fractional quarter; thence East
parallel to the north line of said Southwest fractional quarter of Southwest
fractional quarter 456.16 feet, more or less, to a point 250 feet West of the West
right of way line of the Norton-Glade Express Highway; thence South parallel to
the West line of said Highway 30 feet; thence East parallel to the north line of said
Southwest fractional quarter of Southwest fractional quarter, a distance of 250
feet to the West right-of-way line of the Norton-Glade Express Highway; thence
North along the West right of way line of said Highway 200 feet; thence West
parallel to the north line of said Southwest fractional quarter of Southwest
fractional quarter 250 feet; thence South parallel with the West right-of-way line of
the Norton-Glade Express Highway, 140 feet; thence West parallel to the north
line of said Southwest fractional quarter of Southwest fractional quarter 456.16
feet; more or less, to a point 33 feet East of the West line of said Section 31;
thence South 30 feet to the place of beginning.
PARCEL II:
All that part of the South 250 feet of the North 613 feet of the Southwest fractional
quarter of the Southwest quarter of Section 31, Town 10 North, Range 16 West;
City of Muskegon, Muskegon County, Michigan, which lies West of a line 100 feet
West of, measured at right angles and parallel to the construction centerline of
Highway US-16 and US-31. The construction centerline of Highway US-31 and US-
16 is described as: Beginning at a point 474.31 feet South of the North quarter
corner of Section 7, Town 9 North, Range 16 West, Norton Township, now known
as City of Norton Shores, Muskegon County, Michigan; thence North 88°54' West
2 4/30/2008
City of Muskegon Brownfield Plan Amendment
Betten Auto Dealerships
319.11 feet to the point of curve of a 5°45' curve to the right; thence Northwesterly
along the arc of the curve 1572.17 feet to the point of tangent; thence North 1°30'
East 4927.39 feet to a point of deflection; thence 1°06'50" East 2600 feet to the
point of ending.
PAACELIII:
Part of the North 22 rods of the Southwest fractional quarter of the Southwest
fractional quarter of Section 31, Town 10 North, Range 16 West, Muskegon County,
Michigan, described as follows: Commence 33 feet East and 363 feet South of the
Northwest corner of said Southwest fractional quarter of the Southwest fractional
quarter; thence East parallel to the North line of said Southwest fractional quarter of
the Southwest fractional quarter a distance of 456.16 feet more or less to a point
250 feet West of the West right-of-way line of the Norton-Glade Express Highway;
thence Northerly parallel to said West right-of-way line of said Highway 30 feet;
thence West parallel to the North line of said Southwest fractional quarter of the
Southwest fractional quarter, 456.16 feet to a point 33 feet East of the West line of
said Section 31; thence South 30 feet to place of beginning.
2477 South Henry Street Legal Description:
The land referred to herein below is situated in the City of Muskegon, County of
Muskegon, and State of Michigan, to wit: That part of the Southeast 1/4 of the
Southeast 1/4 of Section 36, Town 10 North, Range 17 West, described as
follows: Commence at the Southeast corner of the North 1O acres of said
Southeast 1/4 of Southeast 1/4 thence West along the South line of said North 1O
acres, 672.04 feet to the West line of the East 1/2 of said Southeast 1/4 of
Southeast 1/4, thence South along said West line of said East 1/2 of Southeast
1/4 of Southeast 1/4, 150 feet, thence East parallel to the South line of said
North 1O acres 671.83 feet to the East line of said Section 36, thence North
along the East line of said Section 36,150 feet to the place of beginning, except
the East 33 feet thereof which are reserved for highway purposes.
2501 South Henry Street Legal Description:
City of Muskegon, County of Muskegon and State of Michigan: That part of the
Southeast 1/4 of the Southeast 1/4 of Section 36, Town 10 North, Range 17
West, described as follows: Commencing at a point on the East line of said Section
36,150 feet South of the Southeast corner of the North 10 acres of said
Southeast 1/4 of the Southeast 1/4; thence West parallel to the South line of the
North 10 acres of said Southeast l/4of the Southeast 1/4, 671.83 feet to the
West line of the East 1/2 of said Southeast 1/4 of the Southeast 1/4; thence South
along said West line of the East 1/2 of the Southeast 1/4 of the Southeast 1/4,
400 feet; thence East parallel to the South line of the North 1O acres of said
Southeast 1/4 of the Southeast 1/4 to the East line of Section 36; thence North
along the East line of Section 36,400 feet to the point of beginning.
3 4/30/2008
City of Muskegon Brownfield Plan Amendment
Be/ten Auto Dealerships
ATTACHMENT S-2
Preliminary Site Plan
Betten Auto Dealerships Brownfield Plan
MUSKEGON, MICHIGAN
4 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bet/en Auto Dealerships
INSERT SITE PLAN
5 4/30/2008
City of Muskegon Brownfield Plan Amendment
Bellen Auto Dealerships
ATTACHMENT S-3
Tax Increment Revenue Estimates
Betten Auto Dealerships Brownfield Plan
MUSKEGON, MICHIGAN
6 4/30/2008
City of Muskegon Brownfield Plan Amendment
Betten Auto Dealerships
Insert tax capture estimate tables
7 413012008
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
Cll=TTl=I\I A 'IT() nc: A I nP1 HI
"
Fiscal Years Total School Total Local Total Tax
Ended or Ending Tax Increment Tax Increment Increment Excess Cumulative
December 31 Year Revenues Revenues Revenues (Shortfall) Increment
2007 $ - $ - $ - $ - $ -
2008 1 410 441 850 850 850
2009 2 89,006 95,778 184,784 184,784 185,634
2010 3 101,006 108,691 209,697 209,697 395,331
2011 4 101,006 108,691 209,697 209,697 605,028
2012 5 101,006 108,691 209,697 209,697 814,725
2013 6 101,006 108,691 209,697 209,697 1,024,421
2014 7 101,006 108,691 209,697 209,697 1,234,118
2015 8 101,006 108,691 209,697 209,697 1,443,815
2016 9 101,006 108,691 209,697 209,697 1,653,512
2017 10 101,006 108,691 209,697 209,697 1,863,209
2018 11 101,006 108,691 209,697 209,697 2,072,906
2019 12 101,006 108,691 209,697 209,697 2,282,602
2020 13 101,006 108,691 209,697 209,697 2,492,299
2021 14 101,006 108,691 209,697 209,697 2,701,996
2022 15 101,006 108,691 209,697 209,697 2,911,693
2023 16 101,006 108,691 209,697 209,697 3,121,390
2024 17 101,006 108,691 209,697 209,697 3,331,087
2025 18 101,006 108,691 209,697 209,697 3,540,783
2026 19 101,006 108,691 209,697 209,697 3,750,480
2027 20 101,006 108,691 209,697 209,697 3,960,177
2028 21 101,006 108,691 209,697 209,697 4,169,874
2029 22 101,006 108,691 209,697 209,697 4,379,571
2030 23 101,006 108,691 209,697 209,697 4,589,268
Source: City of Muskegon
Total Eligible Expenses for Reimbursement $ 3,000,000
Total Amount to Administration
Total Local Taxes to BRA Administration $ 220,000
Total Amount to Local Revolving Fund $ 1,048,484
TOTAL Project TIF $ 4,268,484
1 4/30/2008
EXHIBIT A
To
Brownfield Redevelopment MBT Credit Application Part 1
Site Map and Preliminary Proposed Site Plans
HENRY STREET
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Date: May 13, 2008
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: MERS Health Care Savings Program (HCSP) for Medicare Eligible Retirees
SUMMARY OF REQUEST: You may recall that several months ago the City switched from
subsidizing MediGap insurance coverage through a company called Magna Care to paying an equivalent
cash stipend directly to retirees. This was done both to simplify administration and to give retirees
greater fiexibility in choosing insurance coverage to best meet their needs. One of the issues that came
up was that, as direct cash payments to the retiree, the stipend would be subject to federal income tax.
Working with MERS we have found a way to address this issue. This involves the establishment of
healthcare savings program accounts (HCSP) for eligible retirees. Basically, running the money through
the HCSP accounts will allow us to provide the retiree with the same benefit level, tax-free.
Active non-union and 517M (DPW) employees currently have HCSP accounts that they will carry into
retirement. Additional employee groups are expected to participate. As these employees attain
Medicare eligibility, the need to maintain separate retiree HCSP accounts will diminish.
FINANCIAL IMPACT: Approximately $3,500/year administrative fee to be paid from the City's
retiree healthcare funding vehicle account at MERS. The cash stipend option helps to control the City's
retiree healthcare obligation. Being able to make these payments in a tax-advantaged manner will make
this option much more attractive to both current and future retirees.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of three MERS Healthcare Savings Program
Participation Agreements for Medicare eligible retirees receiving cash stipend for healthcare and/or Rx.
The three agreements are structured around whether the retiree has opted out of medical benefits
($52.08/mo), Rx benefits ($43.08/mo) or both medical and Rx ($93.08/mo).
COMMITTEE RECOMMENDATION: None.
Affirmative Action
(23 1)724-6703
FAX (231)722-1214
Assessor
(231 )724-6708
FAX (231)726-5181
Cemetery
(231 )724-6783
FAX (231)726-5617
West Michigan's Shoreline City
City Manager www.shorelinecity.com
(231 )724-6724
FAX (231)722-1214
Dear Retiree,
Civil Service
(231)724-6716
FAX (231 )724-4405 You may recall that a few months ago, when the City began paying a monthly healthcare stipend in
Clerk lieu of subsidizing coverage through Magna Care, one of the issues that arose was taxability of the
(231)724-6705
FAX (23 l )724-4178
payments to the retiree. Because the payments are added to your regular pension, they are considered
subject to federal taxes.
Comm. & Neigh.
Services
(23 1)724-6717 I'm happy to let you know that we have found a way to make these payments to you so that they are
FAX (231)726-2501
tax-free. The change will not reduce or enhance your benefit; it is simply an administrative change.
Engineering
(23 1)724-6707
FAX (231)727-6904 The City has partnered with MERS to assist in coordinating this benefit. With this partnership, the
Finance
City has set up a MERS Health Care Savings Program account for you. The Health Care Savings
(231)724-6713 Program account is an IRS-approved, tax-favored medical savings account for post-employment
FAX (231)724-6768
healthcare.
Fire Department
(231)724-6792
FAX (231)724-6985 In lieu of paying the stipend in your monthly pension check, the City will deposit your health care
Income Tax
stipend payment into this account. MERS will then automatically remit the payment via direct
(231 )724-6770 deposit back to your personal checking or savings account. The only change you will see is that
FAX (231)724-6768
instead of a single direct deposit amount, you will have two deposit items on your monthly bank
Info. Technology statement: one for your pension and another for the healthcare stipend.
(231)724-4126
FAX (231)722-4301
To begin processing healthcare stipend payments this way, we will need a copy of your Medicare card
Inspection Services
(231 )724-6715 and the three enclosed forms completed and signed by you.
FAX (231 )728-4371
th
Leisure Services The City will conduct informational meetings on this matter June 10 at I 0AM and 2PM in the City
(23 l )724-6704
FAX (231)724-1196 Commission Chambers. Feel free to attend one of these meetings to have your questions answered. At
that time we can collect the needed documents or assist you in filling out any forms. If you cannot
Mayor's Office
(231)724-6701 attend the meetings, please mail the completed and signed Enrollment & Beneficiary Form,
FAX (231)722-1214 Reimbursement Claim form, Direct Deposit Agreement and a copy of your Medicare card to:
Planning/Zoning
(231)724-6702
FAX (231 )724-6790 MERS
Attn: Cara Doerfler
Police Department
(231)724-6750 1134 Muncipal Way
FAX (231)722-5140 Lansing, MI. 48917
Public Works
(231)724-4100
FAX (23 1)722-4188
Thank you for your patience. If you have any questions please contact the City's Finance Department
at 231-724-6713 or Tara Gist at MERS 1-800-767-6377 ext. 356.
Treasurer
(231)724-6720
FAX (231)724-6768 Sincerely,
Water Billing
(23 l )724-67 l 8
FAX (231)724-6768
Timothy J. Paul
Water Filtration
(231)724-4106 Finance Director
FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
http://www.shorelinecity.com
- -
HEA:J.TH CARE SA\' INGS PIIIOGIIIAM
HEALTH CARE SAVINGS PROGRAM
PARTICIPATION AGREEMENT
City of Muskegon
(Participating Employer)
Municipal Employees' Retirement System of Michigan
1134 Municipal Way
Lansing, 1\11 48917
517-703-9030
Restated: November 15, 2005
(Approved May 14, 2003 and
amended August 19, 2004) '-
HCSP-Program-Part Agmt 11-15-05
HEALTH CARE SAVIN GS PROGRAM EMPLOYER
Effective Date of this Participation Agreement _M_a_y_1_,2_0_0_8_ _ _ _ _ _ _ _ _ _ _ __
Health Care Savings Program Coordinator (Name and title) Tim Paul, Finance Director
Address 933 Terrace Street, Muskegon, Ml 49443-0536
Phone ( 231 ) 724 - 6709 Facsimile ( 231 ) 726 . 2325
E-mail tim.paul@postman.org
COVERED EMPLOYEE GROUPS
A participating Employer may cover all of its employee groups, bargaining units or
personnel/employee classifications ("Covered Group"), in Health Care Savings Program or
select from the listing below. Contributions shall be made on the same basis within each
Covered Group identified by this agreement, and remitted as directed by the Program
Administrator. If the Employer has varying coverage or contribution structures between
groups, a separate agreement will need to be completed for each covered group. This agreement
encompasses the group( s) listed below:
All Eligible Employees within the following bargaining unit(s) or personnel/employee
classification(s) (must specify below, e.g., MERS Division l; All Police & Fire; or Police
Command):
All Medicare eligible retirees who opt out of the city's Rx Coverage
ELIGIBLE EMPLOYEES
Only Employees of a "municipality" may be covered by the Health Care Savings
Program Participation Agreement. Independent contractors may not participate in the Health
Care Savings Program. 2. Subject to other conditions in the Trust Document and this
Participation Agreement, the following Covered Group of Employees are deemed to be
"qualified persons" eligible to participate in the Health Care Savings Program:
Check one or both:
IZI With respect to Covered Groups, this Participation Agreement covers all
employees who are in a collective bargaining unit, subject to the terms of the
collective bargaining agreement.
HCSP-Program-Part Agmt 11-15-05
0 With respect to Covered Groups, this Participation Agreement covers all
employees who are subject to the same personnel policy, according to the terms of
the policy.
The Employer shall provide MERS with the name, address, Social Security Number, and date of
birth for each Eligible Employee, as defined by the Participation Agreement on Employee
Enrollment and Beneficiary Designation forms to be provided by MERS Health Care Savings
Program.
EMPLOYER CONTRIBUTIONS
TO THE HEALTH CARE SAVIN GS PROGRAM
The Participating Employer hereby elects to make contributions to the Trnst. Once you
have detem1ined the contribution structure, language should be added in the appropriate area
below. Contributions shall be made on the same basis within each Covered Group specified in
this agreement, and remitted to MERS as directed by the Program Administrator along with the
Participation Report, to be credited to the individual accounts of Eligible Employees as follows:
Check one or more, as applicable:
IZI Basic Employer (Before-Tax) Contributions
These employer contributions may be made as a percentage of salary and/or by a specified dollar
amount. Identify below the basic employer contribution fonnula to be applied to the covered
groups within the Health Care Savings Program identified in this agreement.
Contribution structure (specify): All employees will receive $43.08 per month
• Vesting Cycle For Basic Employer Contributions Only
The employer contributions identified in this Participation Agreement are subject to the
following vesting cycle.
Years of Service Percentage Vested
100%
HCSP-Program-Part Agmt 11-15-05 2
FORFEITURE PROVISION. Upon separation from the service with the Employer
prior to meeting required vesting schedule set out above, or upon Death of the Participant, prior
to meeting the required vesting schedule, a Participant's account assets shall:
Check only one, as applicable:
D Remain in the HCSP sub-trust to be reallocated among all Plan
Participants in on equal dollar basis
D Remain in the HCSP sub-trust to be used to offset future Employer
Contributions
D Be transferred to the Employer's Health Funding Vehicle ("RHFV").
• Mandatory Salary Reduction (Before-Tax} Contributions
Before-tax Employer Contributions to the Health Care Savings Program Sub-Trust shall be made
that represent a mandatory salary reduction resulting from collective bargaining or the
establishment of a personnel policy. These reductions may be made as a percentage of salary or
a specific dollar amount.
Contribution structure (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
D Mandatory Leave Conversion (Before-Tax) Contributions
Before-tax Employer Contributions to the Health Care Savings Program Sub-Trust shall be made
that represent a mandatory conversion of accrued leave including, but not limited to vacation,
holiday, sick leave, or severance amounts otherwise paid out, to a cash contribution. These
contributions may be calculated as a percentage of accrued leave or a specific dollar amount
representing the accrued leave. Leave conversions may be made on an armual basis or at
separation from service, or at such other time as the Employer indicates. (Note: The leave
conversion program shall not permit employees the option of receiving cash in lieu of the
employer contribution.)
The following type of leave shall be convetted to an employer cash contribution to Health Care
Savings Program:
Check one or more, as applicable:
D Vacation Leave Conversion Contribution Structure:
D As of _ _ _ _ _ _ _ _, _ _ _% of vacation leave must be contributed to HCSP.
(Annual Date or X weeks prior to termination)
D Other (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
HCSP-Program-Part Agmt 11-15-05 3
• Sick Leave Conversion Contribution Structure:
D As of _ _ _ _ _ _ _ _ _ _ _ _% of sick leave must be contributed to HCSP.
(Annual Date or X weeks prior to termination)
D Other{specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
D Personal Leave Conversion Contribution Structure:
D As of _ _ _ _ _ _ _ _ _ _ _% of personal leave must be contributed to HCSP.
(Annual Date or X weeks prior to termination)
D Other (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
D Severance Pay Conversion Contribution Structure:
D As of _ _ _ _ _ _ _ _~ ---~% of severance pay must be con1Iibuted to HCSP.
(Annual Date or X weeks prior to termination)
D Other (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
• Post-Tax Employee Contributions
The Participating Employer hereby elects to permit post-tax Employee Contributions to be made
by Eligible Employees within the Covered Group(s), which shall be remitted as directed by the
Program Administrator, to be credited to the individual accounts of Eligible Employees. All
Employee Contributions must be remitted to MERS along with the Participation Report.
MODIFICATION OF THE TERMS OF THE PARTICIPATION
AGREEMENT
If a Participating Employer desires to amend any of its previous elections contained in
this Participation Agreement, including attachments, the Governing Body by official action must
adopt a new Participation Agreement and forward it to the Board for approval. The amendment
of the new Participation Agreement is not effective until approved by the Board and other
procedures required by the Trust Plan Document have been implemented.
HCSP-Program-Part Agmt I 1-15-05 4
STATE LAW
To the extent not preempted by federal law, this agreement shall be interpreted in
accordance with Michigan law.
TERMINATION OF THE PARTICIPATION AGREEMENT
This Pa1ticipation Agreement may be terminated only in accordance with the Trust Plan
Document.
EXECUTION BY GOVERNING BODY OF MUNICIPALITY
The foregoing Participation Agreement is hereby adopted and approved on the ~ day
of_-4-/l}
~ C!:)~ll- - - ~ ' 20.QL__.
GOVERNING BODY
Title - --,l-~'-L-~
~,..;,t.l
"--'O
"'--L-r_ __ _ _ _ _ __
Date of Signature - -"'5'--__,_
I .,_
9_- ---"c2.""'"o
'"'--=
o _,,!?
L --_ _ _
MERS APPROVAL
The Participation Agreement is approved by MERS. Contributions shall first be remitted
beginning with the month of _ _ _ _ _ _ __ _ _ , 20_ _ .
Dated: _ _ _ __ __ _ , 20_ _ By
(Authorized MERS signatory)
Title _ _ _ __ _ __ __ __ __ __
HCSP-Program- Part Agml 11-15-05 5
- - - -- - -- - - -- -
HEAUH CARE SAVINGS PROGRAM
HEALTH CARE SAVINGS PROGRAM
PARTICIPATION AGREEMENT
City of Muskegon
(Participating Employer)
Municipal Employees' Retirement System of Michigan
1134 Municipal Way
Lansing, MI 48917
517-703-9030
Restated: November 15, 2005
(Approved May 14, 2003 and
amended August 19, 2004)
HCSP-Program- Part Agmt 11-15-05
HEAL TH CARE SAVIN GS PROGRAM EMPLOYER
Effective Date of this Participation Agreement _M_a_y_1,_2_o_o_a_ _ _ _ _ _ _ _ _ _ _ __
Health Care Savings Program Coordinator (Name and title) Tim Paul, Finance Director
Address 933 Terrace Street, Muskegon, Ml 49443-0536
Phone ( 231 ) 724 . 6709 Facsimile ( 231 ) 726 - 2325
E-mail tim.paul@postman.org
COVERED EMPLOYEE GROUPS
A participating Employer may cover all of its employee groups, bargaining units or
personnel/employee classifications ("Covered Group"), in Health Care Savings Program or
select from the listing below. Contributions shall be made on the same basis within each
Covered Group identified by this agreement, and remitted as directed by the Program
Administrator. If the Employer has varying coverage or contribution structures between
groups, a separate agreement will need to be completed for each covered group. This agreement
encompasses the group(s) listed below:
All Eligible Employees within the following bargaining unit(s) or personnel/employee
classification(s) (must specify below, e.g., MERS Division 1; All Police & Fire; or Police
Command):
All Medicare eligible retirees who opt out of the city's Medical and Rx coverage
ELIGIBLE EMPLOYEES
Only Employees of a "municipality" may be covered by the Health Care Savings
Program Participation Agreement. Independent contractors may not participate in the Health
Care Savings Program. 2. Subject to other conditions in the Trust Document and this
Participation Agreement, the following Covered Group of Employees are deemed to be
"qualified persons" eligible to participate in the Health Care Savings Program:
Check one or both:
0 With respect to Covered Groups, this Participation Agreement covers all
employees who are in a collective bargaining unit, subject to the terms of the
collective bargaining agreement.
HCSP-Program-Part Agmt 11-15-05
IZl With respect to Covered Groups, this Participation Agreement covers all
employees who are subject to the same personnel policy, according to the terms of
the policy.
The Employer shall provide MERS with the name, address, Social Security Number, and date of
birth for each Eligible Employee, as defined by the Participation Agreement on Employee
Enrollment and Beneficiary Designation forms to be provided by MERS Health Care Savings
Program.
EMPLOYER CONTRIBUTIONS
TO THE HEALTH CARE SAVIN GS PROGRAM
The Participating Employer hereby elects to make contributions to the Trust. Once you
have determined the contribution structure, language should be added in the appropriate area
below. Contributions shall be made on the same basis within each Covered Group specified in
this agreement, and remitted to MERS as directed by the Program Administrator along with the
Participation Report, to be credited to the individual accounts of Eligible Employees as follows:
Check one or more, as applicable:
IZl Basic Employer (Before-Tax) Contributions
These employer contributions may be made as a percentage of salary and/or by a specified dollar
amount. Identify below the basic employer contribution formula to be applied to the covered
groups within the Health Care Savings Program identified in this agreement.
Contribution structure (specify): All employees will receive $93.08 per month
• Vesting Cycle For Basic Employer Contributions Only
The employer contributions identified in this Participation Agreement are subject to the
following vesting cycle.
Years of Service Percentage Vested
100%
HCSP-Program-Part Agmt 11-15-05 2
FORFEITURE PROVISION. Upon separation from the service with the Employer
prior to meeting required vesting schedule set out above, or upon Death of the Participant, prior
to meeting the required vesting schedule, a Participant's account assets shall:
Check only one, as applicable:
D Remain in the HCSP sub-trust to be reallocated among all Plan
Participants in on equal dollar basis
D Remain in the HCSP sub-trust to be used to offset future Employer
Contributions
• Be transferred to the Employer's Health Funding Vehicle ("RHFV").
• Mandatory Salary Reduction (Before-Tax) Contributions
Before-tax Employer Contributions to the Health Care Savings Program Sub-Trust shall be made
that represent a mandatory salary reduction resulting from collective bargaining or the
establishment of a personnel policy. These reductions may be made as a percentage of salary or
a specific dollar amount.
Contribution structure (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
• Mandatory Leave Conversion (Before-Tax) Contributions
Before-tax Employer Contributions to the Health Care Savings Program Sub-Trust shall be made
that represent a mandatory conversion of accrued leave including, but not limited to vacation,
holiday, sick leave, or severance amounts otherwise paid out, to a cash contribution. These
contributions may be calculated as a percentage of accrued leave or a specific dollar amount
representing the accrued leave. Leave conversions may be made on an annual basis or at
separation from service, or at such other time as the Employer indicates. (Note: The leave
conversion program shall not permit employees the option of receiving cash in lieu of the
employer contribution.)
The following type of leave shall be converted to an employer cash contribution to Health Care
Savings Program:
Check one or more, as applicable:
• Vacation Leave Conversion Contribution Structure:
D As of _ _ _ _ _ _ _ _, _ _ _% of vacation leave must be contributed to HCSP.
(Annual Date or X weeks prior to termination)
D Other (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
HCSP-Program-Part Agmt 11-15-05 3
• Sick Leave Conversion Contribution Structure:
0 As of _ _ _ _ _ _ _ _ _ _ _ _% of sick leave must be contributed to HCSP.
(Annual Date or X We/o $ 22,500 $ 0.00%
5200 Operating Supplies 1,137 970 800 113 14% 800 0.00%
5300 Contractual Services 24,176 24,615 23,200 900 4% 23,100 (100) -0.43%
5400 Other Expenses 75 75% 100 100 0.00%
5700 Capital Outlays NIA 0.00%
5900 other Financin Uses N/A 0.00%
$ 45,406 $ 43,578 $ 46,500 $ 1,240 3% $ 46,500 $ 0.00%
$ 4,357,541 $ 4.498,897 $ 4,527,589 $ 345,311 8% $ 4,527,589 $ 0.00%
First Quarter 2008 Budget Reforecast - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through % of Revised Change From From 2008
Actual 2006 Actual 2007 Estimate 2008 March 2008 Revised Estimate 2008 2008 Original Original
70775 General Recreation
5100 Salaries & Benefits $ 86,047 $ 88,539 $ 101,748 $ 25,405 25% $ 101,748 $ 0.00%
5200 Operating Supplies 24,263 24,170 29,000 1,305 5% 29,000 0.00%
5300 Contractual Services 186,107 150,924 135,364 10,543 8% 138,169 2,805 2.07%
5400 other Expenses 1,861 889 3,500 440 13% 3,500 0.00%
5700 Capital Outlays 1,182 7,000 1,175 17% 7,000 0.00%
5900 other Financing Uses N/A 0.00%
$ 299,460 $ 264,522 $ 276,612 $ 38,868 14% $ 279,417 $ 2,805 1.01%
80387 Environmental Services
5100 Salaries & Benefits $ 116,175 $ 123,848 $ 136,296 $ 30,486 22% $ 136,296 $ 0.00%
5200 Operating Supplies 6,520 7,047 6,000 515 9% 6,000 0.00%
5300 Contractual Services 202,397 199,019 245,586 6,982 3% 245,586 0.00%
5400 Other Expenses 500 0% 500 0.00%
5700 Capital Outlays 404 2,852 3,000 0% 3,000 0.00%
5900 Other Financing Uses N/A 0.00%
$ 325,496 $ 332,766 $ 391,382 $ 37,983 10% $ 391,382 $ 0.00%
$ 624,956 $ 597,288 $ 667,994 $ 76,851 11% $ 670,799 $ 2,805
10875 Other - Contributions to Outside Agencies
Muskegon Area Transit (MATS) $ 80,164 $ 180,880 $ 80,164 $ 20,041 25% $ 80,164 0.00%
Neighborhood Association Grants 19,450 19,500 19,252 99% 19,500 0.00%
Muskegon Area First 45,568 45,660 22,784 50'% 45,660 0.00%
Veterans Memorial Day Costs 2,044 6,000 0% 6,000 0.00%
Neighborhoods of Choice N/A 0.00%
Lakeside Business District 2,500 2,500 0% 2,500 0.00%
211 Service 2,500 0% 2,500 0.00%
Institute for Healing Racism 1,000 0% 1,000 0.00%
MLK Diversity Program 1,000 1,000 100% 1,000 0.00%
Muskegon Area Labor Management (MALMC) 1,000 1,000 0% 1,000 0.00%
Muskegon County and Humane Society - Feral Cats 25,287 25,000 6,770 27% 25,000 0.00%
Other N/A 0.00%
Contributions To Outside Agencies $ 176,013 $ 180,880 $ 184,324 $ 69,847 38% $ 184,324 $ 0.00%
$ 176,013 $ 180,880 $ 184,324 $ 69,847 38% $ 184,324 $ 0.00%
Total Customer Value Added Activities $ 18,104,979 $ 18,131,496 $ 18,275,786 $ 3,514,758 19% $ 18,308,591 $ 32,805 0.18%
As a Percent of Total General Fund
Expenditures 73.9% 73.1% 73.8% 74.1% 73.8%
First Quarter 2008 Budget Reforecast - General Fund
General Fund Expenditure Summary By Function
Actual As %Change
Original Budget Actual Through % of Revised Change From From 2008
Actual 2006 Actual 2007 Estimate 2008 March 2008 Revised Estimate 2008 2008 Original Original
II. Business Value Added Activities
10101 City Commission
5100 Salaries & Benefits $ 62,186 $ 62,251 $ 64,428 $ 15,264 24% $ 64,428 $ 0.00%
5200 Operating Supplies 12,925 11,824 12,000 0% 12,000 0.00%
5300 Contractual Services 3,023 2,335 1,800 228 13% 1,800 0.00%
5400 Other Expenses 1,811 3,064 4,000 256 6% 4,000 0.00%
5700 Capital Outlays 8,724 988 900 225 25% 900 0.00%
5900 Other Financing Uses N/A 0.00%
$ 88,669 $ 80,462 $ 83,128 $ 15,973 19% $ 83,1'.?8 $ 0.00%
10102 City Promotions & Public Relations
5100 Salaries & Benefits $ $ $ $ N/A $ $ 0.00%
5200 Operating Supplies 168 985 34 34% 100 100 0.00%
5300 Contractual Services 5,235 10,708 10,935 1,829 17% 10,835 (100) -0.91%
5400 Other Expenses 2 N/A 0.00%
5700 Capital Outlays N/A 0.00%
5900 Other Financing Uses N/A 0.00%
$ 5,403 $ 11,695 $ 10,935 $ 1,863 17% $ 10,935 $ 0.00%
10172 City Manager
5100 Salaries & Benefits $ 204,228 $ 208,363 $ 212,103 $ 59,868 28% $ 212,103 $ 0.00%
5200 Operating Supplies 1,790 1,613 1,800 40 2% 1,800 0.00%
5300 Contractual Services 3,035 2,446 2,800 316 11% 2,800 0.00%
5400 other Expenses 639 1,153 1,300 150 12% 1,300 0.00%
5700 Capital Outlays 272 524 1,520 290% 524 0.00%
5900 Other Financing Uses N/A 0.00%
$ 209,692 $ 213,847 $ 218,527 $ 61,894 28% $ 218,527 $ 0.00%
10145 City Attorney
5100 Salaries & Benefits $ $ $ $ N/A $ $ 0.00%
5200 Operating Supplies 790 1,338 0% 1,338 0.00%
5300 Contractual Services 424,117 439,644 425,000 111,765 26% 425,000 0.00%
5400 Other Expenses N/A 0.00%
5700 Capital Outlays N/A 0.00%
5900 Other Financing Uses N/A 0.00%
$ 424,117 $ 440,434 $ 426,338 $ 111,765 26% $ 426,338 $ 0.00%
$ 727,881 $ 746,438 $ 738,928 $ 191,495 26% $ 738,928 $ 0.00%
20173 Administration
5100 Salaries & Benefits $ 150,764 $ 117,263 $ 120,108 $ 8,372 7% $ 120,108 $ 0.00%
5200 Operating Supplies 1,511 1,083 1,200 (10) -1% 1,200 0.00%
5300 Contractual Services 6,767 7,782 8,400 135 2% 8,400 0.00%
5400 Other Expenses 235 109 500 0% 500 0.00%
5700 Capital Outlays 564 206 253 0% 253 0.00%
5900 Other Financing Uses N/A 0.00%
$ 159,841 $ 126,443 $ 130,461 $ 8,497 7% $ 130,461 $ 0.00%
First Quarter 2008 Budget Reforecast • General Fund
General Fund Expenditure Summary By Function
Actual As %Change
Original Budget Actual Through % of Revised Change From From 2008
Actual 2006 Actual 2007 Estimate 2008 March 2008 Revised Estimate 2008 2008 Original Original
20228 Affirmative Action
5100 Salaries & Benefits $ 30,393 $ 68,661 $ 72,247 $ 18,438 26% $ 72,247 $ 0.00%
5200 Operating Supplies 219 512 750 103 14% 750 0.00%
5300 Contractual Services 1,544 1,533 3,027 144 5% 3,027 0.00%
5400 Other Expenses 856 1,000 4 0% 1,000 0.00%
5700 Capital Outlays 163 900 0% 1,200 300 33.33%
5900 Other Financin Uses N/A 0.00%
$ 32,156 $ 71,725 $ 77,924 $ 18,689 24% $ 78,224 $ 300 0.38%
20744 Julia Hackley Internships
5100 Salaries & Benefits $ 4,350 $ 5,374 $ $ 0% $ 1,000 $ 1,000 0.00%
5200 Operating Supplies 0% 877 877 0.00%
5300 Contractual Services N/A 0.00%
5400 Other Expenses N/A 0.00%
5700 Capital Outlays N/A 0.00%
5900 Other Financin Uses N/A 0.00%
$ 4,350 $ 5,374 $ $ 0% $ 1,877 $ 1,877 0.00%
20215 City Clerk & Elections
5100 Salaries & Benefits $ 241,766 $ 241,725 $ 286,184 $ 64,017 22% $ 286,184 $ 0.00%
5200 Operating Supplies 31,892 21,443 26,617 3,519 13% 26,617 0.00%
5300 Contractual Services 21,830 11,670 16,750 2,562 15% 16,750 0.00%
5400 Other Expenses 1,778 1,383 2,500 308 12% 2,500 0.00%
5700 Capital Outlays 275 1,388 1,000 0% 1,000 0.00%
5900 Other Financin Uses N/A 0.00%
$ 297,541 $ 277,609 $ 333,051 $ 70,406 21% $ 333,051 $ 0.00%
20220 Civil Service
5100 Salaries & Benefits $ 145,934 $ 131,159 $ 152,219 $ 35,200 23% $ 152,219 $ 0.00%
5200 Operating Supplies 8,594 5,621 7,000 1,034 15% 7,000 0.00%
5300 Contractual Services 18,071 22,713 17,509 2,104 12% 17,509 0,00%
5400 Other Expenses 3,300 3,651 3,550 0% 2,550 (1,000) -28.17%
5700 Capital Outlays 617 277 848 66% 1,277 1,000 361.01%
5900 Other Financin Uses NIA 0.00%
$ 175,899 $ 163,761 $ 180,555 $ 39,186 22% $ 180,555 $ 0.00%
$ 669,787 $ 644,912 $ 721,991 $ 136,778 19% $ 724,168 $ 2,177 0,30%
30202 Finance Administration
5100 Salaries & Benefits $ 325,506 $ 331,273 $ 345.455 $ 92,335 27% $ 345,455 $ 0.00%
5200 Operating Supplies 6,627 5,488 5,293 925 17% 5,293 0.00%
5300 Contractual Services 93,703 78,509 76,100 26,653 35% 76,100 0.00%
5400 Other Expenses 303 413 2,750 473 17% 2,750 0.00%
5700 Capital Outlays 4,176 7,829 1,500 0% 1,500 0.00%
5900 Other Financin Uses N/A 0.00%
$ 430,315 $ 423,512 $ 431,098 $ 120,386 28% $ 431,09_8 $ 0.00%
First Quarter 2008 Budget Reforecast - General Fund
General Fund Expenditure Summary By Function
Actual As %Change
Original Budget Actual Through % of Revised Change From From 2008
Actual 2006 Actual 2007 Estimate 2008 March 2008 Revised Estimate 2008 2008 Original Original
30209 Assessing Services
5100 Salaries & Benefits $ 6,343 $ 6,703 $ 6,366 $ 5,439 85% $ 6,366 $ 0.00%
5200 Operating Supplies N/A 0.00%
5300 Contractual Services 436,274 453,134 425,000 1,320 0% 425,000 0.00%
5400 Other Expenses N/A 0.00%
5700 Capital Outlays N/A 0.00%
5900 Other Financing Uses N/A 0.00%
$ 442,617 $ 459,837 $ 431,366 $ 6.759 2% $ 431,366 $ 0.00%
30805 Arena Administration
5100 Salaries & Benefits $ $ $ $ N/A $ $ 0.00%
5200 Operating Supplies N/A 0.00%
5300 Contractual Services 141,030 267,883 235,000 0% 235,000 0.00%
5400 other Expenses 2 129 N/A 0.00%
5700 Capital Outlays 1,422 N/A 0.00%
5900 Other Financin Uses N/A 0.00%
$ 141,032 $ 269,434 $ 235,000 $ 0% $ 235,000 $ 0.00%
30205 Income Tax Administration
5100 Salaries & Benefits $ 248,514 $ 287,511 $ 302,472 $ 74,243 25% $ 302,472 $ 0.00%
5200 Operating Supplies 16,853 18,228 17,110 4,408 26% 17,110 0.00%
5300 Contractual Services 66,912 66,375 59,761 20,393 34% 59,761 0.00%
5400 Other Expenses 629 960 600 33 6% 600 0.00%
5700 Capital Outlays 2,867 360 500 0% 500 0.00%
5900 Other Flnancin Uses N/A 0.00%
$ 335,775 $ 373,434 $ 380,443 $ 99,077 26% $ 380,443 $ 0.00%
30253 City Treasurer
5100 Salaries & Benefits $ 273,532 $ 245,360 $ 312,634 $ 61,879 20% $ 312,634 $ 0.00%
5200 Operating Supplies 29,099 28,725 34,200 5,640 16% 34,200 0.00%
5300 Contractual Services 79,985 66,420 67,822 9,548 14% 67,822 0.00%
5400 other Expenses 568 553 1,500 0% 1,500 0.00%
5700 Capital Outlays 8,591 2,000 600 30% 2,000 0.00%
5900 Other Financin Uses N/A 0.00%
$ 391,775 $ 341,058 $ 418,156 $ 77,667 19% $ 418,156 $ 0.00%
30248 Information Systems Administration
5100 Salaries & Benefits $ 241,116 $ 250,554 $ 260,697 $ 70,373 27% $ 260,697 $ 0.00%
5200 Operating Supplies 81 170 5,500 52 1% 5,500 0.00%
5300 Contractual Services 28,103 50,392 61,759 31,623 51% 61,759 0.00%
5400 Other Expenses 6,765 328 11,000 19 0% 11,000 0.00%
5700 Capital Outlays 39,001 62,801 19,700 48 0% 19,700 0.00%
5900 Other Financin Uses N/A 0.00%
$ 315,066 $ 364,245 $ 358,656 $ 102,115 28% $ 358,656 $ 0.00%
$ 2,056,580 $ 2,231,520 $ 2,254,719 $ 406,004 18% $ 2,254,719 $ 0.00%
First Quarter 2008 Budget Reforecast - General Fund
General Fund Expenditure Summary By Function
Actual As %Change
Original Budget Actual Through % of Revised Change From From 2008
Actual 2006 Actual 2007 Estimate 2008 March 2008 Revised Estimate 2008 2008 Original Original
60265 City Hall Maintenance
5100 Salaries & Benefits $ 63,507 $ 67,232 $ 66,339 $ 18,923 29% $ 66,339 $ 0.00%
5200 Operating Supplies 13,764 10,883 13,375 700 5% 13,375 0.00%
5300 Contractual Services 186,976 177,747 180,000 14,917 8% 180,000 0.00%
5400 Other Expenses N/A 0.00%
5700 Capital Outlays 719 8,000 0% 8,000 0.00%
5900 Other Financin Uses N/A 0.00%
$ 264.247 $ 256,581 $ 267,714 $ 34,540 13% $ 267,714 $ 0.00%
$ 264,247 $ 256,581 $ 267,714 $ 34,540 13% $ 267,714 __ $ 0.00%
80400 Planning, Zoning and Economic Development
5100 Salaries & Benefits $ 397,226 $ 403,843 $ 446,174 $ 112,249 25% $ 446,174 $ 0.00%
5200 Operating Supplies 6,381 4,821 5,600 1,435 26% 5,600 0.00%
5300 Contractual Services 28,840 44,965 46,500 19,100 41% 46,500 0.00%
5400 other Expenses 2,776 3,391 5,000 358 7% 5,000 0.00%
5700 Capital Outlays 2,492 5,093 2,000 0% 2,000 0.00%
5900 Other Financin Uses N/A 0.00%
$ 437,715 $ 462,113 $ 505,274 $ 133,142 26% $ 505,274 $ 0.00%
$ 437,715 $ 462,113 $ 505,274 $ 133,142 26% $ 505,274 $ 0.00%
Total Business Value Added Activities $ 4,156,210 $ 4,341,564 $ 4,488,626 $ 901,959 20% $ 4,490,803 $ 2,177 0.05%
As a Percent of Total General Fund
Expenditures 17.0% 17.5% 18.1% 19.0% 18.1%
First Quarter 2008 Budget Reforecast - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through % of Revised Change From From 2008
Actual 2006 Actual 2007 Estimate 2008 March 2008 Revised Estimate 2008 200~ Original Original
Ill. Fixed Budget Items
30999 Transfers To Other Funds
Major Street Fund $ 300,000 $ 200,000 $ $ N/A $ $ 0.00%
Local Street Fund 480,000 480,000 480,000 120,000 25% 480,000 0,00%
Budget Stabilization Fund 150,000 250,000 NIA 0.00%
LC. Walker Arena Fund (Operating Subsidy) 310,000 N/A 0.00%
Arena Improvement Fund 60,000 N/A 0.00%
Public Improvement Fund (Fire Equipment Reserve) 150,000 150,000 150,000 37,500 25% 150,000 0.00%
State Grants Fund (Grant Matches) 154,880 N/A 0.00%
Marina 40,000 40,000 40,000 0% 40,000 0.00%
Sidewalk 150,000 300,000 N/A 0.00%
MOD State Rehab Loan Fund N/A 0.00%
LDFA Debt Service Fund (Smartzone) 31,262 100,000 150,000 37,500 25% 150,000 0.00%
General Insurance 28,046 28,046 7,011 25% 28,046 0.00%
$ 1,671,262 $ 1,702,926 $ 848,046 $ 202,011 24% $ 848,046 $ 0.00%
30851 General Insurance $ 334,748 $ 350,385 $ 368,834 $ 0% $ 368,834 $ 0.00%
30906 Debt Retirement 3,336 208,859 264,145 120,501 46% 264,145 0.00%
10891 Contingency and Bad Debt Expense 222,802 400,000 135 0% 400,000 0.00%
90000 Major Capital Improvements 5,439 65,580 134,000 1,122 1% 134,000 0.00%
Total Fixed-Budget Items $ 2,237,587 $ 2,327,750 $ 2,015,025 $ 323,769 16% $ 2,015,025 $ 0.00%
As a Percent of Total General Fund
Expenditures 9.1% 9.4% 8.1% 6.8% 8.1%
Total General Fund $ 24,498,776 $ 24,800,810 $ 24,779,437 $ 4,740,486 19% $ 24,814,419 $ 34,982 0.14%
Recap: Total General Fund By Expenditure Object
5100 Salaries & Benefits $ 14,675,373 $ 14,634,795 $ 15,082,550 $ 3,525,969 23% $ 15,083,550 $ 1,000 0.01%
5200 Operating Supplies 545,721 484,841 535,164 60,399 11% 526,521 (8,643) -1.62%
5300 Contractual Services 7,318,724 7,434,746 7,700,278 788,356 10% 7,712,443 12,165 0.16%
5400 Other Expenses 59,725 58,031 77,200 11,084 15% 76,360 (840) -1.09%
5700 Capital Outlays 224,635 276,612 272,054 32,166 11% 303,354 31,300 11.51%
5900 All other Financing: Uses 1,674,598 1,911,785 1,112,191 322,512 29% 1,112,191 0.00%
Total General Fund $ 24,498,776 $ 24,800,810 $ 24,779,437 $ 4,740,486 19% $ 24,814,419 $ 34,982 0.14%
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 Comments
Estimate 2008 March 2008 Revised 2008 2008Original
202 Major Streets and State Trunklines Fund
Avallab!e Fund Balance - BOY $ 847,149 $ 708,102 $ 495,031 $ 1,169,135 $ 1,169,135 $ 674,104
Means of Financing
Special assessments $ 254,840 $ 272,291 $ 250,000 $ $ 250,000 $
Federal & state grants 1,290,725 2,303,829 1,623,000 23 1,933,000 310,000
Shoreline Drive Residual
State shared revenue 2,634,633 2,629,710 2,930,818 237,364 2,930,818
Interest income 123,726 116,227 100,000 8,137 100,000
Operating transfers in 200,000 200,000
Other 272,589 370,376 40,000 34,810 40,000
$ 4,776,513 $ 5,892,433 $ 4,943,818 $ 280,334 $ 5,253,818 $ 310.000
60900 Operating Expenditures
5100 Salaries & Benefits $ 693,692 $ 663,738 $ 931,004 $ 254,682 27% $ 931,004 $
5200 Operating Supplies 196,458 284,582 227,900 145,459 64% 227,900
5300 Contractual Services 935,335 1,093,974 930,000 327,089 35% 930,000
5400 Other Expenses 3,740 1,803 5,000 250 5% 5,000
5700 Capital Outlays NIA
TRANSFER TO LOCAL IN 2007
5900 Other Financing Uses 863,710 968,638 396,093 0% 396,093 ($1,200,000); DEBT SERVICE 2007
($668,137) 2008 ($396,093)
$ 2,692,935 $ 3,012,735 $ 2,489,997 $ 727,480 29% $ 2,489,997 $
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $ $
SEE "BUDGETED CAPITAL
5300 Contractual Services 2,222,625 2,418,665 2,621,000 243,815 7% 3,361,000 4
? 0,000 IMPROVEMENTS" FOR DETAIL
5700 Capital Outlays NIA
$ 2,222,625 $ 2,418,665 $ 2,621,000 $ 243,815 7% $ 3,361,000 $ 740,000
$ 4,915,560 $ 5,431,400 $ 5,110,997 $ 971,295 17% $ 5,850,997
Available Fund Balance• EOY $ 708,102 $ 1,169,135 $ 327,852 $ 478,174 $ 571,956 $ 244,104
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 Comments
Estimate 2008 March2008 Revised 2008 2008Otiginal
203 Local Streets Fund
561,833 $ 648,231 $ 1,725,028 $ 1,389,910 s (335,118)
Available Fund Balance - BOY
' 1,389,910
'
Mean:s of Financing
s s
Special assessments
Federal & state grants ' 182,841
1,981,524 ' 705,740
240,000
18,000
' $ 120,000 102,000
Metro act fees 140,645 140,010 140,000 140,000
State shared revenue 662,550 658,387 675,652 51,866 675,652
Interest income 59,856 243,947 25,000 1,082 25,000
Operating transfers in 783,219 780,000 480,000 120,000 480,000 FROM GENERAL FUND ($480,000)
Other 247.453 15,747 5,000 475 5,000
4,058,088 2,783,831 1,343,652 $ 173,423 s 1,445,652
$ $
' $ 102,000
60900 Operating Expenditures
5100 Salaries & Benefits s 581,113 $ 607,155 s 468,253 $ 173,670 37% $ 468,253 s
5200 Operating Supplies 93,783 110,130 110,000 17,117 16% 110,000
5300 Contractual Services 791,783 863,047 790,378 224,859 28% 790,378
5400 Other Expenses 195 384 1,000 358 36% 1,000
5700 Capital Outlays NIA
5900 Other Financing Uses NIA
1,466,874 1,580,716 1,369,631 416,004 30% s 1,369,631
' $ $ $ $
90000 Project Expenditures
5200 s $ s NIA $ s
5300
Operating Supplies
Contractual Services 2,504,816 461,436 1,410,000
' 122,709 19% 650,000
SEE "BUDGETED CAPITAL
(?SO,OOO) IMPROVEMENTS" FOR DETAIL
$ 2,504,816 $ 461,436 $ 1,410,000 s 122,709 19% $ 650,000 $ (760,000)
$ 3,971,690 s 2,042,152 $ 2,779,631 $ 538,713 27% 2,019,631
'
1,024,620 s 815,931
Available Fund Balance - EOY $ 648,231 $ 1,389,910
'
' 289,049 $
' 526,882
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual2005 Actual 2007 Comments
Estimate 2ooe March 2008 Revised 2008 2008Original
257 Budget Stabilization Fund
Available Fund Balance• BOY $ 1,350,000 $ 1,500,000 $ 1,350,000 $ 1,750,000 $ 1,750,000 $ 400,000
Means of Financing
Special assessments s $ s $ $ s
Federal & state grants
State shared revenue
Charges for services
Interest income
Operating transfers in - General Fund 150,000 250,000
Operating transfers in - TIFA Fund
Operating transfers in - Insurance Fund
Other
$ 150,000 $ 250,000 s $ $ - $
70805 Operating Expenditures
5100 Salaries & Benefits $ $ $ $ NIA $ $
5200 Operating Supplies NIA
5300 Contractual Services NIA
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses 300,000 NIA (300,000) TRANSFER TO GENERAL FUND
$ $ $ 300,000 $ NIA $ $ (300,000)
90000 Project Expenditures
5200 Operating Supplies s $ $ $ NIA $ - s
5300 Contractual Services NIA
$ s $ s NIA $ $
$ $ $ 300,000 $ NIA $
Available Fund Balance• EOY s i ,500,000 $ 1,750,000 $ 1,050,000 $ 1,750,000 s 1,750,000 $ 700,000
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actuat2005 Actual 2007 Comments
Estimate 2008 March 2008 Revised 2008 2008Original
260 Farmers' Market Improvement Fund
Available Fund Balance• BOY $ 24,483 s 25.465 $ 26,765 s 26,755 $ 26,755 $ (10)
Means of Financing
Special assessments $ $ $ $ $ $
Federal & state grants
State shared revenue
Charges for services
Interest income 982 1,290 700 250 700
Operating transfers in - General Fund
Operating transfers in - TIFA Fund
Operating transfers in - Insurance Fund
Other 300 300
$ 982 $ 1,290 $ 1,000 $ 250 s 1,000 $
70805 Operating Expenditures
5100 Salaries & Benefits s $ s $ NIA $ - s
5200 Operating Supplies NIA
5300 Contractual Services NIA
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses NIA
s NIA s - $
'
$
'
90000 Project Expenditures
s s NIA $
' '
5200 Operating Supplies $
5300 Contractual Services 25,000 0% 25,000
$ $ $ 25,000 $ 0% $ 25,000 $
$ $ 25,000 0% s 25,000
' '
s 26,755 2,765 27,005 s 2,755 $ (10)
Available Fund Balance• EOY 25,465 $
'
$
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual2007 Comments
Estimate 2008 March2008 Revised 2008 2008Original
264 Criminal Forfeitures Fund
Available Fund Balance - BOY $ 133,244 $ 157,835 $ 115,835 $ 138,160 s 138,160 $ 22,325
Means of Financing
Special assessments s $ s $ $ s
Federal & state grants
State shared revenue
Charges for services
Interest income 6,023 7,566 3,000 1,337 3,000
Operating transfers in - General Fund
Operating transfers in - TIFA Fund
Operating transfers in - Insurance Fund
Other 74,331 21,143 16,000 14,849 16,000
80,354 28,709 16,186 s
' $ $ 19,000 $ 19,000 $
70805 Operating Expenditures
5100 Salaries & Serieflts s NIA s
5200 Operating Supplies
$
' $
NIA
$
5300 Contractual Services 1,644 949 45,000 0% 45,000
5400 Other Expenses NIA
5700 Capital Outlays 54,119 47,435 18,000 37,494 208% 18,000
5900 Other Financing Uses NIA
$ 55,763 $ 48,384 $ 63,000 $ 37,494 60% s 63,000 $
90000 Project Expenditures
Operating Supplies NIA s
5200
5300 Contractual Services
$ $ $
' NIA
$
$ s $ s NIA $ $
$ 55,763 s 48,384 $ 63,000 s 37,494 60% $ 63,000
Available Fund Balance - EOY $ 157,835 $ 138,160 $ 71,835 $ 116,852 $ 94,160 $ 22,325
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
AClual2005 Actual 2007
Estimate 2008 March 2008 Revised 2008 2008Original
Comments
285 Tree Replacement Fund
Available Fund Balance - BOY $ 13,561 $ 10,210 $ 10,910 $ 9,108 $ 9,108 $ (1,802)
Means of Financing
Special assessments $ $ $ $ $ $
Federal & state grants 3,000 3,000
State shared revenue
Charges for services 400 545 400
Interest income 488 522 500 93 500
Operating transfers in - General Fund
Operating transfers in - TIFA Fund
Operating transfers in - Insurance Fund
Other 1,400 400
$ 488 $ 1,922 $ 3,900 $ 1,038 $ 3,900 $
70805 Operating Expenditures
5100 Salaries & Benefits $ $ $ $ NIA $ $
5200 Operating Supplies 3,839 3,024 3,800 163 4% 3,800
5300 Contractual Services NIA
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses NIA
$ 3,839 $ 3,024 $ 3,800 $ 163 4% $ 3,800 $
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $ $
5300 Contractual Services NIA
$ $ $ $ NIA $ $
$ 3,839 $ 3,024 $ 3,800 $ 163 4% $ 3,800
Available Fund Balance• EOY $ 10,210 $ 9,108 $ 11,010 $ 9,983 $ 9,208 $ (1,802)
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actu;,I Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 Comments
Estimate 2008 March 2008 Revised 2008 2008Original
289 Local Development Finance Authori!}' I Fund - Port Ci!}' Industrial Park
Available Fund Balance - BOY $ 312 $ 323 $ 333 $ 335 $ 335 $ 2
Means of Financing
Property taxes $ $ $ $ $ $
Federal & state grants
State shared revenue
Charges for seNices
Interest income 11 12 10 3 10
Operating transfers in - General Fund
Operating transfers in - TIFA Fund
Operating transfers in - Insurance Fund
other
$ 11 $ 12 $ 10 $ 3 $ 10 $
70805 Operating Expenditures
5100 Salaries & Benefits $ $ $ $ NIA $ s
5200 Operating Supplies NIA
5300 Contractual Services NIA
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses NIA
$ . $ $ $ NIA $ • $
90000 Project Expenditures
5200 Operating Supplies s $ $ $ NIA $ . $
5300 Contractual Services NIA
$ $ s s NIA $ $
$ $ $ $ NIA $
Available Fund Balance - EOY $ 323 s 335 $ 343 $ 338 $ 345 $ 2
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 Comments
Estimate 2008 March200B Revised 2008 2008Original
288 Local Development Finance Authori!Y II Fund - Medendorp Industrial Park
Available Fund Balance - BOY $ 22,321 $ 23,216 $ 24,216 $ 24,393 $ 24,393 $ 177
Means of Financing
Property taxes $ $ $ $ $ $
Federal & state grants
State shared revenue
Charges for services
Interest income 895 1,177 1,000 228 1,000
Operating transfers in - General Fund
Operating transfers in - TIFA Fund
Operating transfers in - Insurance Fund
Other
$ 895 $ 1,177 $ 1,000 $ 228 $ 1,000 $
70805 Operating Expenditures
5100 Salaries & Beriefits $ $ $ $ NIA $ $
5200 Operating Supplies NIA
5300 Contractual Services NIA
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses NIA
$ $ $ $ NIA $ $
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $ $
5300 Contractual Services NIA
$
$ '
$
$
$
$
$
NIA
NIA
$
$
$
Available Fund Balance - EOY $ 23,216 $ 24,393 $ 25,216 $ 24,621 $ 25,393 $ 177
"
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 Comments
Estimate 2008 March 2008 Revised 2008 2008Original
290 Local Development Finance Aulhori!,1 Ill Fund - Edison Landing (Smartzone)
Available Fund Balance - BOY $ 282,397 $ 104,991 $ 26,344 $ 27,275 $ 27,275 $ 931
Means of Financing
Property taxes $ 17,908 $ 28,901 $ 38,000 $ $ 38,000 $
Federal & state grants
State shared revenue
Charges for services
Interest income 10,183 4,881 1,500 749 1,500
Operating transfers in - General Fund 100,000 150,000 37,500 150,000
COMMUNITY FOUNDATION
Other 75,000 75,000 75,000
CONTRIBUTION
$ 28,091 $ 208,782 $ 264,500 $ 38,249 $ 264,500 $
70805 Operating Expenditures
5100 Salaries & Benefits $ $ $ $ NIA $ $
5200 Operating Supplies NIA
5300 Contractual Services 350 1,000 1,000 0% 1,000
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses 205,147 285,498 282,547 102,573 36% 282,547
$ 205,497 $ 286,498 $ 283,547 $ 102,573 36% $ 283,547 s
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $ $
5300 Contractual Services NIA
$ $ $ $ NIA $ $
$ 205,497 $ 286,498 $ 283,547 $ 102,573 36% $ 283,547
Available Fund Balance - EOY $ 104,991 27,275 s 7,297 (37,049) 8,228
$
'
$ $
' 931
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Actual2005 Actual 2007
Original Budget Actual Through Actual As % of Revised Estimate Change From
Comments
Estimate 2008 March 2008 Revised 2008 2008Original
305 Tax Increment Finance Authority Fund
Available Fund Balance - BOY $ 3,355 $ 8,758 $ 5,893 s 6,352 $ 6,352 s 459
Means of Financing
Property taxes $ 58,740 $ 56,835 $ 47,000 $ $ 47,000 $
Federal & state grants
State shared revenue
Charges for services
Interest Income 663 759 200 72 200
Operating transfers in - General Fund
Operating transfers in - TIFA Fund
Operating transfers in - Insurance Fund
Other
$ 59,403 $ 57,594 $ 47,200 $ 72 $ 47,200 $
70805 Operating Expenditures
5100 Salaries & Benefits s $ s $ NIA $ s
5200 Operating Supplies NIA
5300 Contractual Services NIA
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses 54,000 60,D00 50,000 0% 50,000 • TO GENERAL FUND FOR ARENA
$ 54,000 $ 60,000 $ 50,000 $ 0% $ 50,000 $
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $ $
5300 Contractual SeNices NIA
$ $ NIA s
$ 54,0D0 $ 60,000 '
$ 50,000 '
$ 0% $ 50,000
$
Available Fund Balance - EOY s 8,758 $ 6,352 $ $ s 459
'
3,093 6,424 3,552
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual2007 Comments
Estimate 2008 March2008 Revised 2008 2008Original
394 Downtown Development Authori!}r Fund
Available Fund Balance - BOY $ 50,072 $ (103,996) $ 26.472 $ (58,608) s (58,608) $ (85,080}
Means of Financing
Property taxes s 350,401 $ 476,460 s 456,000 $ $ 456,000 s
Federal & state grants
State proposal A reimbursement revenue 499,537
Charges for services
Interest income 3,664 1,500 1,500
Operating transfers in - General Fund
Operating transfers in - TJFA Fund
Operating transfers in - Insurance Fund
Other
$ 853,602 $ 476,460 $ 457,500 $ s 457,500 $
70805 Operating Expenditures
5100 Salaries & Benefits $ $ $ $ N/A $ $
5200 Operating Supplies NIA
5300 Contractual Services 661,927 83,330 N/A
5400 Other Expenses 10,000 10,000 100% 10,000 - MAIN STREET PROGRAM
5700 Capital Outlays N/A
DEBT SERVICE ($339,292 BONDS;
5900 Other Financing Uses 345,743 347,742 439,292 0% 439,292
$100,000 ULA)
$ 1,007,670 $ 431,072 $ 449,292 $ 10,000 2% $ 449,292 $
90000 Project E:,,:penditures
5200 Operating Supplies $ $ $ $ N/A $ $
5300 Contractual Services N/A
$ $ $ $ N/A s
s 1,007,670 $ 431,072 $ 449,292 $ 10,000 2% $ 449,292
(103,996) $ (58,608) $
Available Fund Balance - EOY $ 34,680
' (68,608) $ {50,400) $ (85,080)
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 March 2008 Revised 2008 2008Original
Comments
Estimate 2008
408 Arena Improvement Fund
Available Fund Balance - BOY $ $ 79,386 s 76.486 $ 76,724 $ 76,724 s 238
Means of Financing
Special assessments $ $ $ $ $ - $
Federal & state grants
State shared revenue
Charges for services 11,978 37,363 40,000 17,937 40,000
Interest income 395 3,603 2,000 826 2,000
Operating transfers in 74.743
Other
$ 87,116 $ 40,966 $ 42,000 $ 18,763 $ 42,000 $
30906 Operating Expenditures
5100 Salaries & Benefits $ $ $ $ NIA $ - $
5200 Operating Supplies 0%
5300 Contractual Services 7,730 43,628 25,000 5,850 NIA 25,000
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses NIA
$ 7,730 $ 43,628 $ 25,000 $ 5,850 23% $ 25,000
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $ - $
5300 Contractual Services NIA
5400 Other Expenses NIA
5900 Other Financing Uses NIA
$ $ $ $ NIA $ $
$ 7,730 $ 43,628 $ 25,000 $ 5,850 23% $ 25,000
Available Fund Balance. EOY $ 79,386 $ 76,724 $ 93,486 $ 89,637 $ 93,724 $ 238
X
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual2005 Actual 2007 Comments
Estimate 2008 March2008 Revised 2008 2008Original
403 Sidewalk lmerovement Fund
Available Fund Balance - BOY $ 919,113 $ 902,104 $ 751,276
'
1,017,584
' 1,017,584 $ 266,308
Means of Financing
150,000
Special assessments
Federal & state grants '
196,684 $ 142,505
' 150,000
' $
'
State shared revenue
Charges for seivices
Interest income 77,177 69,753 65,000 7,777 65,000
Operating transfers in 150,000 300,000
Other
'
423,861 $ 512,258
'
215,000 $ 7,777
' 215,000
'
30906 Operating Expenditures
NIA
'
$ $
5100
5200
Salaries & Benefits
Operating Supplies
$
' $
NIA
5300 Contractual Services 950 950 NIA
5400 other Expenses NIA
5700 Capital Outlays NIA
DEBT SERVICE ON SIDEWALK
5900 Other Financing Uses 433,175 395,828 344,285 188,973 55% 344,285
ASSESSMENT BONDS
344,285
'
434,125 396,778 344,285 188,973 55% $ $
$
' '
90000 Project Expenditures
5200
5300
Operating Supplies
Contractual Services ' 6,745
$ $ $ NIA
NIA ' $
5400 Other Expenses NIA
5900 Other Financing Uses NIA
$ NIA $ $
$ 6,745
' '
$ 440,870 $ 396,778
'
344,285 $ 188,973 55%
' 344,285
266,308
Available Fund Balance. EOY
'
902,104 $ 1,017,584
'
'
621,991
'
836,388
' 888,299
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 Comments
Estimate 2008 March2008 Revised 2008 2008Original
404 Public Improvement Fund
Available Fund Balance - BOY $ 1,755,346 $ 4,842,311 $ 1,805,088 $ 2,151,037 s 2,151,037 $ 345,949
Means of Financing
Special assessments $ $ s s $ s
Property taxes
Federal & state grants
Contributions
Fisherman's landing Repayment
Sales of Property 557,066 126,736 150,000 15 150,000
Interest income 97,956 198,398 60.000 34,780 60,000
GENERAL FUND TRANSFER - FIRE
Operating transfers in 262,965 154,047 250,000 37,500 250,000 EQUIPMENT RESERVE ($150,000);
FROM ODA FOR ULA ($100,000}
Other 5,463,335 40,592
s 6,381,322 $ 519,773 s 460,000 $ 72,295 $ 460,000 s
30936 Operating Expenditures
5100 Salaries & Benefits $ s $ $ NIA $ $
5200 Operating Supplies NIA
5300 Contractual Services 5.000 0% 5,000
5400 Other Expenses NIA
5700 Capital Outlays NIA
DEBT SERVICE ($292,419); TRANSFER
5900 Other Financing Uses 1,360,797 292,223 442,419 0% 442,419 TO STATE GRANTS FOR SMITH-
RYERSON ($150,000)
s s s
1,360,797 $ 292,223 447,419
' 0% $ 447,419
90000 Project Expenditures
I $ NIA $
5200
5300
Operating Supplies
Contractual Services
$ $
NIA '
5400 Other Expenses NIA
5700 Capital Outlays 1,933,560 2,918,824 65,000 74,828 35% 215,000 150,000
2,918,824 s 74,828 s
$
$
1,933,560
3,294,357 's 3,211,047
$
$
65,000
512,419 s 74,828
35%
11%
$
$
215,000
662,419
150,000
Available Fund Balance - EOY $ 4,842,311 $ 2,151,037 $ 1,752,669 $ 2,148,504 $ 1,948,618 $ 195,949
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 Comments
Es~rnate 2008 March 2008 Revised 2008 2008Original
482 State Grants Fund
Available Fund Balance - BOY s 102 77,048 s 150,102 s 150,054
' 48 $ $ 150,102
Means of Financing
s s
'
Special assessments $ $ $
Federal & state grants 1,538,744 386,535 727,000 263,001 1,197,000 470,000
Sales of Property
Interest income
Operating transfers in 500,673 150,833 150,000 30,000 (120,000) FROM PUBLIC IMPROVEMENT FUND
Other 5,000 10,000 10,000
s
'
$ 2,044,417 547,368 877,000 273,001 1,227,000 350,000
$
' $
30936 Operating Expenditures
5100 Salaries & Benefits NIA $
5200 Operating Supplies
$ $ $ $
NIA '
5300 Contractual Services NIA
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses 9,276 11,473 NIA
s
' '
$ 9,276 11,473 $ NIA
90000 Project Expenditures
$
' '
5200 Operating Supplies $ $ NIA $
5300 Contractual Services NIA
SEE "BUDGETED CAPITAL
5700 Capital Outlays 1,958,195 462,841 877,000 43,927 3% 1,377,000 500,000 IMPROVEMENTS" FOR DETAIL
' 1,958,195
' 462,841
' 877,000
' 43,927 3%
' 1,377,000
'
500,000
1,967,471
' 474,314 $ 877,000
' 43,927 3% $ 1,377,000
$ $ $ 102
'
Available Fund Balance - EOY 77,048 150,102 48 $ 379,176 $ 54
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 ActuaJ 2007 Comments
Estimate 2008 March 2008 Revised 2008 2008Original
594 Marina & Launch Rame Fund
Available Cash Balance - BOY _!_ {13,384) S (39,617) $ (4,943) $ 20,509 $ 20,509 $ 25.452
Means of Financing
Special assessments $ $ $ $ $ $
Federal & state grants 534,220
State shared revenue
Charges for services 267,104 281,679 260,000 75,849 260,000
Interest income 38 73
$40,000 GENERAL FUND OPERATING
Operating transfers in 540,000 40,000 40,000 40,000
SUBSIDY
Other 307
s 1,341,631 $ 321,717 s 300,000 $ 75,922 $ 300,000 s
70756 Operating Expenditures - Marina
5100 Salaries & Benefits $ 109,507 $ 121.489 $ 118,082 s 10,923 9% $ 118,082 $
5200 Operating Supplies 6,838 10,338 9,900 650 7% 9,900
5300 Contractual Services 135,350 130,462 135,000 13,806 10% 135,000
5400 Other Expenses 100 510 43 NIA
5700 Capital Outlays 3,836 1,641 NIA
5900 Other Financing Uses NIA
Other Cash Uses (e.g. Debt Principal) (2,849) NIA
$ 255,631 $ 261,591 $ 262,982 $ 25,422 10% $ 262,982 $
70759 Operating Expenditures• Ramps
5100 Salaries & Benefits $ s $ 15,000 s 0% $ 15,000 s
5200 Operating Supplies 2,000 0% 2,000
5300 Contractual Services 5,000 923 18% 5,000
5400 Other Expenses NIA
5700 Capital Outlays NIA
5900 Other Financing Uses NIA
Other Cash Uses (e.g Debt Principal) 43,794 NIA
s 43,794 $ s 22,000 $ 923 4% $ 22,000 $
90000 Project Expenditures
5200 Operating Supplies $ s $ s NIA $ $
5300 Contractual Services NIA
5700 Capital Outlays 1,068,439 NIA
$ 1,068,439 $ $ $ NIA $ $
$ 1,367,864 $ 261,591 $ 284,982 $ 26,345 9% s 284,982
Available Cash Balance - EOY $ (39,617) $ 20,509 $ 10,075 $ 70,086 $ 35,527 $ 25,452
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual 2005 Actual 2007 Comments
Estimate 2008 March2008 Revised 2008 2006Original
661 Eguiement Fund
Available Cash Balance - BOY $ 1,493,873 $ 1,614,451 $ 1,956,058 $ 2,004,577 $ 2,004,577 $ 48,519
Means of Financing
Special assessments $ - $ $ $ $ $
Federal & state grants
State shared revenue
Charges for services 2,190,015 2,520,803 2,300,000 726,708 2,300,000 INTERDEPARTMENTAL CHARGES
Interest income 59,520 85,618 60,000 17,602 60,000
Operating transfers in
Other 136,297 80,000 100,000 16,848 100,000 OUTSIDE SALES OF FUEL, ETC.
$ 2,385,832 $ 2,686,421 $ 2,460,000 $ 761,158 s 2.460,000
60932 Operating Expenditures
5100 Salaries & Benefits s 501,358 $ 515,579 s 565,047 $ 148,798 26% $ 565,047 $
5200 Operating Supplies 817,482 844,914 649,500 205,790 32% 649,500
5300 Contractual Services 487,678 494,272 490,370 78,516 16% 490,370
5400 Other Expenses 4,129 1,351 5,000 46 1% 5,000
SEE "BUDGETED CAPITAL
5700 Capital Outlays 595,851 445,596 817,750 89,699 i1% 814,370
(3 ,3 BO) IMPROVEMENTS" FOR DETAIL
5900 Other Financing Uses NIA
Other Cash Uses (e.g. Debt Principal) (141,244) (5,417) NIA
s 2,265,254 $ 2,296,295 s 2,527,667 $ 522,849 21% $ 2,524,287 s (3,380)
90000 Project Expenditures
5200 Operating Supplies $ $ $ s NIA $ $
5300 Co11tractual Services NIA
5700 Capital Outlays NIA
$ $ $ $ NIA s $
2,265,254 $ 2,296,295 2,527,667 $ 522,849 21% 2,524,287
$
' $
Available Cash Balance - EOY s 1,614,451 $ 2,004,577 $ 1,888,391 $ 2,242,886 $ 1,940,290 s 51,899
City of Muskegon
First Quarter 2008 Budget Reforecast • Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual2005 Actual 2007 Comments
Esbmate 2008 March 2008 Revised 2008 2008Original
642 Public Service Building Fund
Avaltab!e Cash Balance - BOY $ 176,596 $ 270,889 $ 296,143 $ 375,313 $ 375,313 $ 79,170
Means of Financing
Special assessments
Federal & state grants
$ $ $ $
' $
State shared revenue
Charges for seivices 581,270 581,270 581,270 143,517 581,270 INTERDEPARTMENTAL CHARGES
Interest income 7,755 14,061 9,000 3,132 9,000
Operating transfers in
Other 100 100
$ 589,025
' 595,431 $ 590,270 $ 146,749 $ 590,270 $
60442 Operating Expenditures
5100 Salaries & Benefits $ 209,305 $ 214,017 $ 212,047 $ 53,297 25% $ 212,047 $
5200 Operating Supplies 26,685 18,609 31,400 2,219 7% 31,400
5300 Contractual Services 245,699 241,077 278,965 38,473 14% 278,965
5400 Other Expenses 5,334 2,056 500 (82) -16% 500
5700 Capital Outlays 11,514 23,229 38,400 41 0% 38,400
5900 Other Financing Uses NIA
Other Cash Uses and Adjustments {e.g.
(3,805) {7,981) NIA
Debt Principal)
494,732 491,007 561,312 93,948 17% 561,312
' $
' $ $
'
90000 Project Expenditures
5200 Operating Supplies $ - $ $ $ NIA $ $
5300 Contractual Services NIA
5700 Capital Outlays NIA
$ $ $ $ NIA $
$ 494,732 $ 491,007 $ 561,312 $ 93,948 17% '
$ 561,312
Available Cash Balance - EOY $ 270,889 $ 375,313 $ 325,101 $ 428,114 $ 404,271 $ 79,170
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual2005 Actual 2007 Comments
Estimate 2008 March 2008 Revised 2008 2008Original
643 Engineering Services Fund
Available Cash Balance. BOY $ 145,183 s 149,528 $ 147,231 $ 96,427 $ 96,427 $ (50,804)
Means of Financing
Special assessments $ $ $ $ $ $
Federal & state grants
State shared revenue
Charges for services 514,467 513,556 640,000 90,896 640,000 INTERDEPARTMENTAL CHARGES
Interest income 4,878 6,361 5,000 1,383 5,000
Operating transfers in
Other 25,000 25,000
$ 519,345 $ 519,917 $ 670,000 $ 92,279 $ 670,000 $
60447 Operating Expenditures
5100 Salaries & Benefits $ 398,181 $ 321,641 $ 450,474 $ 70,284 16% s 450,474 $
5200 Operating Supplies 16,090 16,894 19,180 7,345 38% 19,180
5300 Contractual Services 121,761 126,832 127,915 30,381 24% 127,915
5400 Other Expenses 1,158 532 2,500 558 22% 2,500
5700 Capital Outlays 7,377 17,093 42,000 886 2% 42,000
5900 Other Financing Uses NIA
Other Cash Uses and Adjustments (e.g.
(36,401) 82,557 NIA
Debt Princi al
$ 508.166 $ 565,549 $ 642.069 $ 109,454 17% $ 642,069 $
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $
5300 Contractual Services 6,834 7,469 25,000 0% 25,000
5700 Capital Outlays NIA
$ 6,834 $ 7,469 s 25,000 s 0% $ 25,000 $
$ 515,000 $ 573,018 $ 667,069 $ 109,454 16% $ 667,069
Available Cash Balance• EOY $ 149,528 $ 96.427 $ 150,162 s 79,252 $ 99,358 $ (50,804)
'
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As % of Revised Esti!IUlle Change From
Actual 2005 Actual 2007
Estimate 2008 March2008 Revised 2008 20080riginal
Comments
677 General Insurance Fund
Available Cash Balance - BOY $ 745,060 $ 841,326 $ 1,064,372 $ 1,206,249 $ 1,206,249 141,877
'
Means of Financing
Special assessments -
Federal & state grants
$
' ' ' $ $
State shared revenue
Charges for seNices 2,945,466 4,551,973 3,185,868 927,657 3,185,868 INTERDEPARTMENTAL CHARGES
Interest income 20,374 39,250 25,000 9,861 25,000
MERS Retireee Health Reimbursement 1,500,000 1,500,000
Medicare Part D Rx Reimbursement 35,000 35,000
Repayment of ODA Advance
LOAN REPAYMENT ARENA
Operating transfers in 1,157,522 28,045 28,046 7,011 28,046
IMPROVEMENTS
Other 3,248 20,000 20,000
$
$ 4,126,610 $ 4,619,268 4,793,914 $ 944,529
' 4,793,914 $ 4,773,914
30851 Operating Expenditures
5100
5200
Salaries & Benefits
Operating Supplies ' $
' 27,640 $ 6,711 24%
NIA '
27,640
'
5300 Contractual Services 4,014,747 4,062,168 4,685,868 884,802 19% 4,685,868
5400 Other Expenses 1,500 0% 1,500
5700 Capital Outlays 956 250 1,500 0% 1,500
5900 Other Financing Uses 31,189 NIA
Other Cash Uses and Adjustments (e.g
14,641 160,738 NIA
Debt Princi al
4,030,344 4,254,345 4,716,508
$ $ $ $ 891,513 19%
' 4,716,508 $ 4,716,508
90000 Project Expenditures
5200
5300
Operating Supplies
Contractual Services '
$
' $ NIA
NIA ' '
5700 Capital Outlays NIA
' ' ' ' NIA $
'
$ 4,030,344
'
4,254,345
'
4,716,508
' 891,513 19% $ 4,716,508
Available Cash Balance. EOY $ 841,326 1,206,249 1,141,778 1,259,265 $
' $
' 1,283,655
City of Muskegon
First Quarter 2008 Budget Reforecast - Other Funds
Original Budget Actual Through Actual As% of Revised Estimate Change From
Actual2005 Actual 2007 Comments
Estimate2008 March 2008 Revised 2008 2008Original
590 Sewer Fund
Available Cash Balance - BOY $ 1,270,352 $ 895,306 $ 1,144,190 $ 767,541 $ 767,541 $ (376,649)
Means of Financing
Special assessments $ $ - $ - $ $ $
Federal & state grants
State shared revenue
Charges for services 4,739,774 5,033,881 5,439,669 777,349 5,439,669
Interest income 39,199 34,046 30,000 6,168 30,000
Repayment of DOA advance
Operating transfers in 107,356
Other 63,928 145,213 80,000 3,657 80,000
$ 4,950,257 $ 5,213,140 $ 5,549,669 $ 787,174 $ 5,549,669 .-
30548 Operating Expenditures Administration
5100 Salaries & Benefits s $ $ $ NIA $ $
5200 Operating Supplies 8 8 NIA
INSURANCE/INDIRECT
5300 Contractual Services 393,064 296,385 325,199 61,827 19% 325,199
COSTS/ADMINISTRATION FEE
5400 Other Expenses 5,939 (70) NIA
5700 Capital Outlays NIA
5900 Other Financing Uses 63,233 25,221 37,771 0% 37,771 INTEREST ON SEWER BONDS
Other Cash Uses and Adiustments (e.g. 645,041 598,586 523,520 0% 523,520 PRINCIPAL ON SEWER BONDS
$ 1,107,277 $ 920,130 $ 886,490 $ 61,835 7% $ 886,490 $
60559 Operating Expenditures Maintenance
5100 Salaries & Benefits $ 767,901 $ 881,660 $ 953,069 $ 204,960 22% $ 953,069 $
5200 Operating Supplies 71,508 57,366 66,650 1,705 3% 66,650
5300 Contractual Services 3,024,363 3,192,714 2,972,105 628,990 21% 2,972,105
5400 Other Expenses 717 222 1,350 400 30% 1,350
5700 Capital Outlays 6,804 6,925 11,950 269 2% 11,950
5900 Other Financing Uses NIA
$ 3,871,293 $ 4,138,887 $ 4,005,124 $ 836,324 21% $ 4,005,124 $
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $ $
SEE "BUDGETED CAPITAL
5300 Contractual Services 346,733 281,888 820,000 7,312 1% 839,000 lS,OOO IMPROVEMENTS" FOR DETAIL
5700 Capital Outlays NIA
$ 346,733 $ 281,888 $ 820,000 $ 7,312 1% $ 839,000 s 19,000
$ 5,325,303 $ 5,340,905 $ 5,711,614 $ 905,471 16% $ 5,730,614
Available Cash Balance• EOY $ 895,306 $ 767,541 $ 982,245 $ 649,244 $ 586,596
'
Citv of r,foskenon
Quarterlv Budoet Reforecast and 2008 Prooosed 8udoet
1st Quarter 2nd Quarter 3rd Quarter
Original Associated
Responsibility Budget Budget Budget Comments
Budget Grant
Reforecast Reforecast Reforecast
2008 PROJECTS
101 General Fund
City Hall - New Roof Over Police Department $ 27,500
' $ 33,000 $
' -I
I
Police Departement - Men's Locker Room Remodeling 10000 4 500 Design/Engineering
37,500 37,500
202 Maior Streets
99118 Bridges Maintenance and Repairs Per Evaluation Af-Shalel 35,000 35,000 Preventative Maintenance
White topping and Water Main/Services Work STP&
97125 Clay Street, Third to Terrace Af-Shatel 450,000 400,000 400,000
UT Grant Funds
Reconstruction With All New Ulilities
90019 Division Street, Laketon to Southern Af-Shatel 516,000 316,000 516,000
(Mains/Services\ - STP & LJT Grant Funds
97120 McGrafl, Glen to Addison Af-Shatel 325,000 247,000 325,000 Reconstruction - STP & LJT Grant Funds
Reconstruct With New 2000' ofWatennain and
94045 Pine Street, Apple to Western {2000') Af-Shatel 325,000 400,000
Services Alona, Minor Storm Sewer Work -
WhitetopinglResurfacing, Sidewalk.Along NorthSk!e-
94025 Sherman/Henry Intersection AI-Shatel 300,000 270,000 325,000
From Barclau to Plaia - Saferu Grant
Milling and Resurface, HPP/LJT Grant Funding of
98117 Quarter1ine, Apple to Stebbins AI-Shatel 440,000 700,000 715,000
$700,000 - Joint ProiectWith MCRC
98115 Stale Job (US-318R} at Sherman and Hackley) Al-Shale! 10,000 10,000 11.25% of State's Share
Lakeshore Drive, Laketon to Michigan Al-Shale! 55,000 Microsurfacing, Approv'd By Commission 4122/08
Beidler. Laketon to Southern Al-Shatel 395,000 Reconstruction, Approv'd By Commission 2/12/06
On-StreeUOff-Street Bike Path, Approv·dB~
lakeshore Drive Trail. McCracken to Cottage Grove AI..Shatel 100,000
Commission 4122/06
West Branch of Ruddima11 Creek - Culvert Ba56d on FTC H's Report - Renects City's Share of
98116 AI-Shatel 220000 l;!~ OQQ Cost Onlv 1$550,000 Total Cost)
Reclacement
2,621,000 1,933,000 3,361,000
203 Local Streets
98101 Harbor Towne Circle (5000') AI-Shatel 490,000 5,000 Petition Withdrawn, Project Removed
Reconstruct and Replace Watennain and Sanitary·
96102 Isabella, Terrace to Ambrosia (1400') Al-Sha tel 225,000 135,000
s=c
98103 Dale, Peck to Sanford N-Shatel 65,000 65,000 Reconstruction
98104 Roblane, Quarterline to Marlane (550') Af-Shalel 80,000 100,000 Reconstruction, Storm Sewer
98105 Seventh Street, Muskegon to Webster Al-Shale! 85,ooo 85,000 Reconstruction
98106 Estes Street, Lakeshore Drive to Fair N-Shatel 135,000 15,000 Failed Special Assessment
96103 Vincent/Park, Barclay to North End (1200'} Af-Shatel 165,000 20,000 Failed Special Assessment
98107 Jiroch, Southern to lrv,111, Reconstruction (1000') AI-Shatel 165 000 225 000 Reconstruction - Water - Sewer & Services
1,410,000 650,000
260 Fanners' Market lrng:rovement Fund
Farmers market upgrades 25,000 25,000
404 Public fm!;!rovement Fung
Richard's Park Building Demolition 65,000 65,000
City Hall Generator Af-Shatel 150 000 Emergency Generator from 2007
65,000 215,000
482 S!i!te Qri!n!!i! F!!n~
98114 Smilh-Ryeraon Improvements AI-Shatel 577,000 427,000 577,001) $150,000 local Match from GF Made in 2007
Brubaker- No Match
94013 CMI Site Assessme11t Projects (General) 50,000 50,000 50,000
Clarlwha 90,000 90,000 Replacements for 1995 Vehicles
.glfY.. of 'Muskegon
(;juarterl Budaet Reforecast and 2008 Prooosed Bud<>et
1st Quarter 2nd Quarter 3rd Quarter
Original Associated
Responsibility Budget Budget Budget Comments
Budget Grant
Reforecast Reforecast Re forecast
2008 PROJECTS ----~-
2 3/4 ton Pickup Kuhn 66,000 52,772 Replacements for 2000 Vehicles
'1
Sedans
Plow Truck
Kuhn
Kuhn
60,000
90,000
45,648
!l0,000
Replacements for 2000 Malibus
Replacement for 1993 Vehicle
2 4x4 Trucks for Fire Department Kuhn 50,000 50,000 Replacements
1 Parking Checker Vehicle Kuhn 20 000 20000
817,750 814,370
s 9,276,870
$ 8,848.250 2,880,000
' ' '
Commission Meeting Date: May 13, 2008
Date: May 2, 2008
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department Cl3G
RE: Brownfield Development & Reimbursement
Agreement- Betten
SUMMARY OF REQUEST: As part of the Brownfield Plan and Tax Increment
Finance (TIF) capture for the Betten project, it is necessary to have a Development
Agreement in place. In addition, the document includes a Reimbursement
Agreement for the Site Assessment Loan, in the amount of $250,000.
FINANCIAL IMPACT: The Agreement will insure that the taxes are captured and
Betten is reimbursed for the agreed upon eligible expenses. In addition, the Site
Assessment Loan will be repaid through the TIF capture in a timely manner.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the attached resolution and authorize the
Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority will
review the Agreement and make a recommendation to the City Commission at their
May 13, 2008 meeting.
2008-44(c)
RESOLUTION APPROVING THE BETTEN BROWNFIELD PROJECT
DEVELOPMENT AND REIMBURSEMENT AGREEMENT
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of
Muskegon, County of Muskegon, Michigan (the "City"), held in the City Commission
Chambers, on the 13th of May, 2008, at 5:30 o'clock p.m., prevailing Eastern Time.
PRESENT: Members
Gawron, Shepherd, Spataro, Warmington 1 Wierenga, and
Carter
ABSENT: Members
Wisneski
The following preamble and resolution were offered by Member
Gawron and supported by Member Wierenga
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the "Authority") has prepared and approved a Brownfield
Plan Amendment to include the Bellen Auto Dealerships Project (Bellen Brownfield
Plan Amendment); and
WHEREAS, the City Commission has approved and adopted the Bellen
Brownfield Plan Amendment; and
WHEREAS, a Development and Reimbursement Agreement has been
negotiated between the City and Betten to provide for reimbursement of "eligible
expenses" through tax increment financing as provided by the Betten Brownfield
Plan Amendment.
NOW, THEREFORE, BE IT RESOLVED, THAT:
1. The Development and Reimbursement Agreement between the City
and Bellen for the Betten Auto Dealerships Brownfield Plan Amendment is
necessary to facilitate the implementation of the Brownfield Plan,
2. The Betten Brownfield Project Development and Reimbursement
Agreement, as submitted by the Authority, is hereby approved.
3. Repealer. All resolutions and parts of resolutions insofar as they conflict
with the provisions of this resolution be and the same hereby are rescinded.
AYES: Members
Carter, Gawron, Shepherd, Spataro, Warmington, and
Wierenga
NAYS: Members
None
RESOLUTION DECLARED ADOPTED","'_ , . .
~~\ \,\J\ ,l.A (hL LK ,\_.,
Ann Marie Becker, City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon,
State of Michigan, at a regular meeting held May 13, 2008, and that said meeting
was conducted and public notice of said meeting was given pursuant to and in full
compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan,
1976, as amended, and that the minutes of said meeting were kept and will be or
have been made available as required by said Act
(; .
·~
'
(\ \ . (i /
\'\., \ \ )'>, \ '\i ;\ !) , \> \ cl( A-::,
Ann Marie Becker, City Clerk
2008-44(c)
BROWNFIELD DEVELOPMENT AND
REIMBURSEMENT AGREEMENT
THIS AGREEMENT, made this _D___day of May, 2008, (the "Agreement") by and
among:
the CITY OF MUSKEGON
of 933 Terrace Street, Muskegon, Michigan 49440 (the "City");
the BROWNFIELD REDEVELOPMENT AUTHORITY
OF THE CITY OF MUSKEGON, an authority established
pursuant to Act 3 81 of the Public Acts of 1996, as amended ("Act 381 "),
of 933 Terrace Street, Muskegon, Michigan 49440 (the "Authority");
and
BETTEN CHEVROLET, INC., a Michigan corporation,
of2474 South Henry Street, Muskegon, Michigan 49441; and
BETTEN AUTOMOTIVE GROUP, INC., a Michigan corporation,
of2474 South Henry Street, Muskegon, Michigan 49441
(both collectively the "Developer"),
with reference to the following facts and circumstances:
RECITALS
A. Pursuant to Act 3 81, the Authority has prepared a Brownfield Plan which was
duly approved by the Commissioners of the City, and an Amendment thereto which incorporates
the Betten Automotive Dealerships project; which Amendment was duly approved by the
Authority on April 1, 2008, then approved by the Authority as revised on May 13, 2008, and
approved as revised by the Commissioners of the City on May 13 , 2008 (the "Brownfield
Plan").
B. The Developer leases those parcels of real property commonly known as 2410,
2474, 2477 and 2501 South Henry Street, Muskegon, Michigan, from other entities which the
Developer controls. Notwithstanding, with reference to 24 77 South Henry Street, as of the date
1
of this Agreement, an entity which the Developer controls has an agreement with the owner of
the 2477 South Heruy Street parcel to purchase that parcel. Collectively, these four (4) parcels
are referred to herein as the "Property", and are legally described on the attached Exhibit A.
The Property is included in the Brownfield Plan as a "facility" and "eligible property" due to the
presence on the Property of certain hazardous substances as described in the Brownfield Plan,
and it is therefore commonly referred to as a "brownfield."
C. The Developer plans to redevelop and utilize the Property for commercial
purposes as full service automobile dealerships. The project has and will require one or more
baseline environmental assessments ("BEAs") and due care plans as well as due care activities,
including the placement of fill and/or other barrier(s) to protect the public from direct contact
with contaminated soils and/or groundwater, and additional response activities to properly
dispose of contaminated soil and/or groundwater encountered. Completion of the project will
provide protection to workers and visitors from direct contact with the existing soil
contamination and will provide an engineeri,ng control to distinguish future releases from
existing contamination.
·D. Act 381 permits the use of the real and personal property tax revenues generated
from the increase in value to brownfield sites constituting "eligible property" under Act 3 81
resulting from their redevelopment to pay or reimburse the payment of costs (including interest)
of conducting activities that meet the requirements under Act 381 of "eligible activities"
(hereinafter "Eligible Costs") and, unless the property owner or developer is a "liable party" for
the site contamination, permits the reimbursement to the property owner or developer of such
Eligible Costs incurred by the property owner or developer.
2
E. In order to make the improvements on the Property, the Developer has incurred
and will incur Eligible Costs in connection with certain Eligible Activities, which may include,
but are not limited to, the preparation of one or more BEAs and due care plans, certain due care
activities, including the placement of fill and/or other barrier(s) to protect against direct human
contact with contaminated soil and/or groundwater, and additional activities that are not response
activities such as demolition of structures, infrastructure improvements, lead or asbestos
abatement, and site preparation, all of which will require the services of various contractors,
engineers, environmental consultants, attorneys and other professionals.
F. In accordance with Act 381 and the Brownfield Plan, the parties desire to use the
property tax revenues from all taxing jurisdictions (local & State) that are generated from an
increase in the tax value of the Property resulting from its development ("Tax Increment
Revenues") to reimburse the Developer for Eligible Costs it incurs in redeveloping the Property;
to reimburse the City for Eligible Costs it incurs in making infrastructure improvements that will
directly benefit the project, and to fund a local site remediation revolving fund pursuant to Act
381 (the "Revolving Fund").
G. The parties are entering into this Agreement to establish the procedure for such
reimbursement from Tax Increment Revenues.
NOW, THEREFORE, the parties agree with each other as follows:
1. Defmitions
"Additional Response Activities" are defined by Section 2(a) of Act 381;
"Baseline Environmental Assessment Activities" is defined by Section 2(d) of Act 381;
"Brownfield Redevelopment Financing Act" means Act No. 381 of the Public Acts of
1996, as amended, MCLA 125.2651 et seq.;
"Brownfield Plan or Plans" is defined by Section 2(g) of Act 381;
3
"Due Care Activities" is defined by Section 2(k) of Act 381;
"Eligible Activities" is defined by Section 2(m) of Act 381;
"Eligible Property or Property" is defined by Section 2(n) of Act 381;
"Eligible Party" is defined by Section 2(m) of Act 381;
"Tax Increment Revenues" is defined by Section 2(ee) of Act 381.
2. The Plan
The Betten Auto Dealerships Brownfield Redevelopment Plan approved by the Authority
and the City Commission is attached hereto as Exhibit B and incorporated herein (the "Plan").
3. Term of Agreement
Pursuant to the Plan, the Authority shall capture I 00% of the Tax Increment Revenues
(local & State) from the real and personal property taxes assessed by all taxing jurisdictions on
the Eligible Property for all tax years from 2008 through 2030.
(a) The Eligible Costs reimbursable to the Developer under this Agreement shall be
those Eligible Costs which are paid by or the responsibility of the Developer, including interest
as provided in paragraph I 0( c).
(b) Reimbursement to Developer for its Eligible Costs shall be limited to the earliest
or least of the following: (I) reimbursement of all Eligible Costs under this Agreement; (2)
reimbursement of the Eligible Costs other than the City's cost for the Henry Street Resurfacing,
together with the City's cost for the Henry Street Resurfacing (as described in Section 7) in an
amount not to exceed Three Hundred Thousand and No/I 00 Dollars ($300,000), in the total
maximum amount of Three Million and No/100 Dollars ($3,000,000) (the "3,000,000 Cap"); or
(3) in recognition that the build-out of the project will likely not be substantially complete and
available for Developer's productive use until after the effective date for the 2009 tax year
4
assessment, and in recognition of the City's desire to cap the reimbursement to the Developer for
Developer's Eligible Costs after sixteen (16) years from the substantial completion of the project,
after reimbursement to Developer for Developer's Eligible Costs in the total amount of all Tax
Increment Revenues billed and eligible for capture under the Plan and this Agreement from the
date of this Agreement through December 31, 2025 (the "16 Year Cap").
4. Eligible Activities
The Authority and the City recognize that prior to the date of this Agreement, Developer
may have initiated Eligible Activities, the cost of which may be submitted with a Request for
Cost Reimbursement for Eligible Activities. The Developer will be reimbursed for Eligible
Costs which were incurred by it prior to this Agreement only if permitted under Act 381. The
Developer shall diligently pursue completion of the Eligible Activities set forth in the Plan. No
activities completed after January 1, 2030 shall be considered Eligible Activities. This deadline
may be extended at the discretion of the Authority. Such extension to be effective shall be in
writing.
5. East Sewer Line Relocation and West Sewer Line Work
(a) The Developer and the City agree that Developer shall undertake and complete to
the City's reasonable satisfaction the relocation of a sanitary sewer line located in the east side of
the project. Notwithstanding any other provision of this Agreement, reimbursement to the
Developer for up to Seventy-Five Thousand and NO/100 Dollars ($75,000) of its costs for this
sewer line relocation shall, for accounting purposes only, not be considered in calculation of the
$3,000,000 Cap or the 16 Year Cap, insofar as reimbursement for such Eligible Costs would
limit reimbursement to Developer of its other Eligible Costs per the terms of this Agreement; in
such case, reimbursement for the Eligible Costs would continue if and as necessary to reach the
5
$3,000,000 Cap or the 16 Year Cap, whichever comes first. The Developer's costs for this sewer
line relocation in excess of Seventy-Five Thousand and No/100 Dollars ($75,000) shall be
considered part of Developer's Eligible Costs and included in and applied against the $3,000,000
Cap and/or the 16 Year Cap, and subject to reimbursement to the Developer as such as otherwise
provided under this Agreement.
(b) The Developer shall use a "sewer camera" to investigate the condition of the
existing sewer line located in the West side of the Project, and shall undertake reasonably
necessary cleaning and repairs to the portion of that sewer line within the Project site, at a cost to
Developer not to exceed One Hundred Fifty Thousand and No/100 Dollars ($150,000). The
costs associated with televising, cleaning, and/or repairing this West side sewer line shall be
Eligible Costs. Notwithstanding, if the foregoing costs exceed One Hundred Fifty Thousand and
NO/100 Dollars ($150,000), such excess amounts will be paid by the City but may, at the City's
option, only be reimbursed to the City from the captured Tax Increment Revenues at any time
after the earliest of the fulfillment of the 16 Year Cap, the $3,000,000 Cap, or reimbursement of
all of Developer's Eligible Costs under this Agreement.
6. MDEQ Brownfield Loan
The Developer and City agree that the City shall utilize its Michigan Department of
Environmental Quality ("MDEQ") Brownfield Loan; and thereunder shall loan to Developer the
amount of Two Hundred Fifty Thousand and No/100 Dollars ($250,000) to pay the first Two
Hundred Fifty Thousand and No/100 Dollars ($250,000) of the environmental response activity
costs incurred by the Developer in this project, to the extent authorized by law and/or the
MDEQ. The terms for repayment of this MDEQ loan shall be consistent with the loan contract
between the MDEQ and the City ("MDEQ Loan Contract"). To the extent not inconsistent
6
with the MDEQ Loan Contract, the principle amount of this loan and any interest thereon shall
be repaid to the City by the Developer pursuant to the terms of a promissory note or other
agreement between the parties ("Promissory Note"). This Promissory Note shall provide that no
interest shall accrue on the principle balance of this loan until March 18, 20 l 0, with interest
thereafter at two percent (2%) per annum, and repayment over a ten (10) year period
commencing with a principal payment of Twenty-Five Thousand and No/100 Dollars ($25,000)
due on March 18, 2010, then nine equal annual installments of Twenty-Seven Thousand Five
Hundred Ninety and 23/100 Dollars ($27,590.23) due on the eighteenth day of March each year
from 2011 through 2019. Developer shall provide a mortgage subordinated to the security
interests of its primary lenders for the project, or such other subordinated security for this loan as
may be agreed by the parties. Developer's principle and interest payments for this loan
reimbursement shall be considered part of Developer's Eligible Costs, and subject to
reimbursement as otherwise provided under this Agreement.
7. Henry Street Resurfacing
The parties agree that the City shall undertake and pay for a certain additional public
infrastructure improvement that directly benefits the project, as described herein.
(a) The City shall undertake and pay for milling and resurfacing Henry Street
between Sherman Street and Hackley Street (the "Henry Street Resurfacing"), if Developer
provides written notice to the City requesting the City to proceed with the Henry Street
Resurfacing. Provided that if Developer does not provide such written notice before January 1,
2013, such request shall be deemed made on January 1, 2013, even if Developer does not
provide any such written notice, and the City shall proceed with the Henry Street Resurfacing.
7
The costs for this work shall be considered part of the Eligible Costs, and subject to
reimbursement as specifically provided in this Agreement.
(b) The City's costs for the Henry Street Resurfacing, up to a maximum of Three
Hundred Thousand and NO/100 Dollars ($300,000), shall be reimbursable to the City over a
period of years from the captured Tax Increment Revenues. The amount of such reimbursement
in any year shall be determined by multiplying the total dollar amount incurred and paid by the
City for the Henry Street Resurfacing as of December 31 of the then most recent past calendar
year by ten percent (I 0%), provided that the amount of such reimbursement in any year shall not
exceed Thirty Thousand and No/I 00 Dollars ($30,000). Reimbursement under this formula shall
continue until all such costs incurred and paid by the City for the Henry Street Resurfacing (to
the maximum amount of Three Hundred Thousand and NO/100 Dollars ($300,000)) have been
paid in full. All such reimbursement(s) to the City in a total amount not to exceed Three
Hundred Thousand and No/100 ($300,000) shall be included in and applied against the 16 Year
Cap and the $3,000,000 Cap, and shall be paid in full by the time the earlier of the 16 Year Cap
or the $3,000,000 Cap is reached. Notwithstanding any other provision of this Section 7(b), if in
the year that the $3,000,000 Cap or the 16 Year Cap is reached, the City has not yet been fully
reimbursed for the lesser of all of its Eligible Costs or Three Hundred Thousand and No/100
Dollars ($300,000) for the Henry Street Resurfacing, the City may be reimbursed in that year in
an amount which exceeds Thirty Thousand and No/100 Dollars ($30,000).
( c) The City shall not be paid or reimbursed for any interest from the Captured Tax
•Increment Revenues or by the Developer on the City's cost for the Henry Street Resurfacing.
( d) If the City incurs and pays more than for Three Hundred Thousand and NO/100
Dollars ($300,000) for the Henry Street Resurfacing during the term of this Agreement, such
8
excess amount may, at the City's option, be reimbursed to the City from the captured Tax
Increment Revenues at any time after the earliest of the fulfillment of the 16 Year Cap, the
$3,000,000 Cap, or reimbursement of all of Developer's Eligible Costs under this Agreement.
8. Reimbursement Source
During the term of this Agreement, the Developer shall be reimbursed for its Eligible
Costs from 100% of the Tax Increment Revenues (except amounts paid to or retained by the
Authority for the Authority Fee and reimbursed to the City for the Henry Street Resurfacing)
collected from all taxing jurisdictions (local & State) as to real and personal property taxes on the
Eligible Property, in the order provided in section l0(d) of this Agreement.
9. Administration Fee to Authority
From the Tax Increment Revenues collected during the term of this Agreement, the
Authority shall be paid the sum of Ten Thousand and No/100 Dollars ($10,000) per calendar
year for its administration of the Plan (the "Authority Fee"), provided that if the total Tax
Increment Revenues captured (or, if Developer fails to timely pay its property taxes on the
project, the amount capturable if such taxes were timely paid) in any calendar year are
insufficient to pay the Authority Fee under the Payment Priority Schedule in that year, the unpaid
amount of the Authority Fee for that year shall accrue and be paid according to the Payment
Priority Schedule in the next year in which sufficient captured Tax Increment Revenues are
available. Notwithstanding anything to the contrary in this Agreement, the Authority Fee shall
not be considered as part of or applied to the calculation of the 16 Year Cap or the $3,000,000
Cap (as is the case for the $75,000 of the sewer costs detailed in section 5 of this Agreement),
and for accounting purposes shall be deemed to be collected and paid after the Developer has
been repaid the entirety of its Eligible Costs per the terms of this Agreement.
9
10. Reimbursement Process
(a) On a quarterly basis beginning with the period ending June 30, 2008, the
Developer shall submit to the Authority a Request for Cost Reimbursement for Eligible
Activities paid by the Developer during the prior period within thirty (30) days after the end of
any such quarter for Eligible Costs paid by Developer. For Eligible Costs incurred prior to April
I, 2008, such request may be submitted by May 31, 2008. Notwithstanding the foregoing, if
Developer fails to submit a request or documentation for any Eligible Costs in the thirty (30) day
period after the quarter in which such costs were paid by Developer, such request or
documentation may be submitted in a later quarter. The request for reimbursement shall be in
the form attached hereto as Exhibit C ("Petition"). Documentation of the costs incurred shall be
inclu~ed with the Petition including invoices for the costs incurred sufficient to determine
whether the costs incurred were for Eligible Activities. The Petition shall be signed by a duly
authorized representative of Developer.
(b) Twice a year, after the summer and winter taxes are billed and collected on the
Property, from such taxes the Authority shall pay the reimbursement to Developer for
Developer's Eligible Costs within forty-five (45) days from the date such taxes are collected, in
the amount determined by application of the Payment Priority Schedule described below.
Notwithstanding the foregoing, if any such taxes are collected during the first thirty (30) days
after a summer tax bill is issued, such taxes shall be deemed collected on the thirtieth day after
such tax bill is issued, and if any such taxes are collected during December in any year, such
taxes shall be deemed collected on December 31 of that year for purposes of calculating the
forty-five (45) day period by which the Authority shall pay the reimbursement to the Developer.
10
Each such collection and reimbursement cycle shall be herein referred to as a "Reimbursement
Period."
(c) Interest shall accrue on the Developer's costs for Eligible Activities at the rate of
six and one-half percent (6.5%) per annum. Such interest shall be included in the Eligible Costs
for purposes of this Agreement. Interest shall begin to accrue on any such costs on the date that
Developer submits to the Authority evidence of its payment of such Eligible Costs and shall
continue to accrue on all unreimbursed costs for Eligible Activities submitted by Developer until
the earlier of the 16 Year Cap or upon payment of all Eligible Costs up to the $3,000,000 Cap.
(d) All captured Tax Increment Revenues shall be paid or applied pursuant to the
following schedule (''Payment Priority Schedule"):
(i) First, the Developer shall be reimbursed in the amount of all principle and
interest due and owing by Developer to the City under the Promissory Note in that
Reimbursement Period and any principal and interest accrued but unreimbursed from prior
Reimbursement Period(s).
(ii) Second, provided that additional captured Tax Increment Revenues are
available, they shall then be used to pay the Authority Fee for that calendar year and any
Authority Fee(s) accrued but unpaid from prior year(s).
(iii) Third, provided that additional captured Tax Increment Revenues are
available, they shall then be used to pay the annual installment for the Henry Street Resurfacing
as determined pursuant to Section 7(b).
(iv) Fourth, provided that additional captured Tax Increment Revenues are
available, they shall then be used to reimburse the Developer for its Eligible Costs associated
with the East sewer line relocation.
11
(v) Fifth, provided that additional captured Tax Increment Revenues are
available, they shall be used to reimburse the other Eligible Costs.
(e) In the event there are no funds available in any Reimbursement Period from taxes
captured from the sources identified in this Paragraph 10 for Developer, then there shall be no
repayment obligation in that Reimbursement Period to Developer or City, or payment obligation
to the Authority for the Authority Fee.
(f) The City or the Authority shall provide, upon Developer's request, an accounting
of its (their) calculations apportioning any reimbursement or payment under this Agreement.
(g) Reimbursement of Eligible Costs shall be effectuated to Developer with:
Checks payable to: BETTEN CHEVROLET, INC.
Delivered to the following address: 2474 South Henry Street
Muskegon, Michigan 49441
By first class mail.
11. Legislative Authorization
This Agreement is governed by and subject to the restrictions set forth in the Act. In the
event that there is legislation enacted in the future which alters or affects the amount of Tax
Increment Revenues subject to capture, Eligible Properties, or Eligible Activities, then the
Developer's rights and the Authority's obligations under this Agreement may be modified
accordingly by agreement of the parties.
12. Freedom of Information Act
Developer stipulates that all Petitions and documentation submitted by Developer shall
be open to the public under the Freedom of Information Act, Act No. 442 of the Public Acts of
1976, being Sections 15.23 to 15.24 of the Michigan Compiled Laws and no claim of trade
12
secrets or other privilege or exception to the Freedom of Information Act will be claimed by
Petitioners as it relates to this Agreement, Petitions for Reimbursement and supporting
documentation.
13. Plan Modification
The Plan and this Agreement may be modified to the extent allowed under the Act by
mutual agreement of the Parties affected by the modification. This Agreement is subject to the
MDEQ and Michigan Economic Development Corporation approvals of the Act 381 Work Plan
for Eligible Activities which are not materially inconsistent with the provisions of this
Agreement.
14. Notices
All notices shall be given by registered or certified mail addressed to the parties at their
respective addresses as shown above. Either party may change the address by written notice sent
by registered or certified mail to the other party.
15. Assignment
The interest of each party under this Agreement shall not be assignable without the other
party's written consent, which shall not be umeasonably withheld.
16. Entire Ag:reement
This Agreement, together with all instruments and agreements referred to in this
Agreement, supersedes all agreements previously made between the parties relating to the
subject matter. There are no other understandings or agreements between them.
17. Non-waiver
13
No delay or failure by either party to exercise any right under this Agreement, and no
partial or single exercise of that right, shall constitute a waiver of that or any other right, unless
otherwise expressly provided herein.
18. Headings
Headings in this Agreement are for convenience only and shall not be used to interpret or
construe its provisions.
19. Governing Law
This Agreement shall be construed in accordance with and governed by the laws of the
State of Michigan.
20. Counterparts
This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same instrument.
21. Binding Effect
The provisions of this Agreement shall be binding upon and inure to the benefit of each
of the parties and their respective heirs, legal representatives, successors, and assigns.
[SIGNATURE PAGE TO FOLLOW]
14
The parties have executed this Agreement in duplicate original on the date set forth above.
THE CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT
AUTHORITY OF THE CITY OF MUSKEGON
By:
Its: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
BETTEN CHEVROLET, INC., BETTEN AUTOMOTIVE GROUP, INC.,
a Michigan corporation a Michigan corporation
By: - - - - - - - - - - - - - By: - - - - - - - - - - - - - -
Bryan Betten Bryan Betten
Its: President Its: President
15
EXHIBIT A
PROPERTY DESCRIPTIONS
Property Address: 2410 South Henry Street
Muskegon, Michigan 49441
Tax Parcel No.: 61-24-131-300-0035-00
Legal Description:
Commencing on the North line, 33 feet East of the Northwest comer of the
Southwest fractional¼ of the Southwest fractional¼ of Section 31, Town 10 North,
Range 16 West; thence South, parallel to the West line of said Section, 303 feet;
thence East, parallel with the North line, 456.76 feet; thence North 303 feet; thence
West 456.76 feet to the point of beginning;
Property Address: 2474 South Henry Street
Muskegon, Michigan 49441
Tax Parcel No.: 61-24-131-300-00-37
Legal Description:
PARCELi:
That part of the North 22 rods of the Southwest fractional quarter of the Southwest
fractional quarter of Section 31, Town 10 North, Range 16 West, described as
follows: Commence 33 feet East and 333 feet South of the Northwest comer of said
Southwest fractional quarter of Southwest fractional quarter; thence East parallel to
the north line of said Southwest fractional quarter of Southwest fractional quarter
456.16 feet, more or less, to a point 250 feet West of the West right of way line of
the Norton-Glade Express Highway; thence South parallel to the West lien of said
Highway 30 feet; thence East parallel to the north line of said Southwest fractional
quarter of Southwest fractional quarter, a distance of250 feet to the West right of
way line of the Norton-Glade Express Highway; thence North along the West right
of way line of said Highway 200 feet; thence West parallel to the north line of said
Southwest fractional quarter of Southwest fractional quarter 250 feet; thence
South parallel with the West right of way line of the Norton-Glade Express
Highway, 140 feet; thence West parallel to the north line of said Southwest
fractional quarter of Southwest fractional quarter 456.16 feet, more or less, to a
point 33 feet East of the West line of said Section 31; thence South 30 feet to the
place of beginning.
A-1
PARCEL II:
All that part of the South 250 feet of the North 613 feet of the Southwest fractional
quarter of the southwest quarter of Section 31, Town 10 North, Range 16 West, City
of Muskegon, Muskegon County, Michigan, which lies West ofa line 100 feet West
of, measured at right angles and parallel to the construction centerline of Highway
US-16 and US-31. The construction centerline of Highway US-31 and US-16 is
described as: Beginning at a point 474.31 feet South of the North quarter comer of
Section 7, Town 9 North, Range 16 West, Norton Township, now known as City of
Norton Shores, Muskegon County, Michigan; thence North 88°54' West 319.11
feet to the point of curve of a 5°45' curve to the right; thence Northwesterly along
the arc of the curve 1572.17 feet to the point of tangent; thence North 1°30' East
4927.39 feet to a point of deflection; thence 1°06'50" East 2600 feet to the point of
ending.
PARCEL III:
Part of the North 22 rods of the Southwest fractional quarter of the Southwest
fractional quarter of Section 31, Town 10 North, Range 16 West, Muskegon
County, Michigan, described as follows: Commence 33 feet East and 363 feet South
of the Northwest comer of said Southwest fractional quarter of the Southwest
fractional quarter; thence East parallel to the North line of said Southwest fractional
quarter of the Southwest fractional quarter a distance of 456.16 feet more or less to a
point 250 feet West of the West right of way line of the Norton-Glade Express
Highway; thence Northerly parallel to said West right of way line of said Highway
30 feet; thence West parallel to the North line of said southwest fractional quarter of
the Southwest fractional quarter, 456.16 feet to a point 33 feet East of the West line
of said Section 31; thence South 30 feet to place of beginning.
Property Address: 2477 South Henry Street
Muskegon, Michigan 49441
Tax Parcel No.: 61-24-036-400-0027-00
Legal Description:
That part of the Southeast 1/4 of the Southeast 1/4 of Section 36, Town 10 North, Range 17
West, described as follows: Commence at the Southeast comer of the North 10 acres of said
Southeast 1/4 of Southeast 1/4 thence West along the South line of said North 10 acres,
672.04 feet to the West line of the East 1/2 of said Southeast 1/4 of Southeast 1/4, thence
South along said West line of said East 1/2 of Southeast 1/4 of Southeast 1/4150 feet, thence
East parallel to the South line of said North 10 acres 671.83 feet to the East line of said
Section 36, thence North along the East line of said Section 36,150 feet to the place of
beginning, except the East 33 feet thereof which are reserved for highway purposes.
A-2
Property Address: 2501 South Henry Street
Muskegon, Michigan 49441
Tax Parcel No.: 6\-24-036-400-0029-00
Legal Description:
That part of the Southeast 1/4 of the Southeast 1/4 of Section 36, Town 10 North. Range
17 West, described as follows: Commencing at a point on the East line of said Section 36,
150 feet South of the Southeast comer of the North 10 acres of said Southeast 1/4 of the
Southeast 1/4; thence West parallel to the South line of the North 10 acres of said
Southeast 1/4 of the Southeast 1/4, 671.83 feet to the West line of the East 1/2 of said
Southeast 1/4 of the Southeast 1/4; thence South along said West line of the East 1/2 of
the Southeast 1/4 of the Southeast 1/4, 400 feet thence East parallel to the South line of
the North 10 acres of said Southeast 1/4 of the Southeast 1/4 to the East line of Section
36; thence North along the East line of Section 36, 400 feet to the point of beginning.
A-3
EXHIBITB
THE PLAN
B-1
EXHIBIT C
BROWNFIELD REQUEST FOR COST
REIMBURSEMENT FOR ELIGIBLE ACTIV1TIES
Date: - - - - - - - - -
Reimbursement Cost Item Eligible Cost
1.
2.
3.
4.
5.
6.
7.
I certify that the information submitted on and with this Request for Cost Reimbursement is
accurate and is an eligible cost described in the Brownfield Plan for this project approved by the
Township Board.
Developer:
Signature:
Title:
Address:
Each reimbursement cost item must have documentation that is attached to this request form.
This documentation shall include detailed invoices.
D-1
DATE: 05/06/2008
TO: Honorable Mayor and Commissioners
FROM: Mark Kincaid, Deputy Director of Public Safety
RE: Dangerous Building Case#: EN030170 Bids for Demolition
SUMMARY OF REQUEST: The Inspections department requests that the City
Commission award a bid for demolition of the property located at 593 W. Western to the
lowest responsible bidder.
593 W. Western Ave (Commercial)- To execute a contract for demolition with the
lowest responsible bidder.
Press LLC $55,450.00* I Franklins Contractors $18, 400 I Griffelle $33, 999*
*(Includes engineer study)
Case# & Project Address: # EN030170 - 593 W. Western
Location and ownership: This structure is located on Western Ave. and is owned by
Muskegon Hotel LLC, 15877 Lake Ave, Grand Haven, Ml 49417.
Staff Correspondence: A dangerous building inspection was conducted on 11/10/03.
The Notice and Order to Repair was issued on 11/10/03. On 01/08/04 the HBA
declared the structure substandard and dangerous. On 03/02/04 the HOC concurred
with their decision. The City Commission concurred with the findings of the Housing
Board of Appeals on May 25, 2004.
An inspection conducted in April 8, 2008 revealed continuing deterioration of the
building. In the opinion of inspection staff the structure presents a danger the public.
The director of public safety has determined that the structure needs to be demolished
prior to the start of the summer events season.
The current owner has obtained a demolition permit and has been given until June 1O·
2008 to complete demolition of the structure. Should he fail to do so, the City needs to
be prepared to begin demolition on June 11, 2008.
Owner Contact:
Financial Impact: General Funds
Budget action required: None
Staff Recommendation:
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